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New insurance company asking for a copy of current insurance policy?

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J

JP_in_Colorado

Guest
What is the name of your state? Colorado

We are in the process of changing insurance companies for not only homeowner's but also auto because we are not happy with our current insurance company. We are not changing because of claims issues, but more because of general customer service issues. This new company is asking for copies of our policies with our current carrier. Is this normal??? I asked her why she needed copies of them, and she said that "they are a preferred company and the underwriter will need them." I asked, so they can re-rate us versus what we were quoted? She said "no," but I am feeling a little leary about why they would need our current policies. She also said for the auto insurance that they get copies of the policy make sure that someone doesn't just get insurance in order to register their car, then drop the insurance. They want proof that we have a policy in effect. Seems logical, but still odd. I've never had an insurance company ask for my current policy before they will insure me as a new customer.

Are there any reasons why they would need the prior policy aside from their "preferred company" status? If not, what should I say to this agent? I don't want to be re-rated for providing it nor not offered coverage because we don't provide it. I feel a little trapped at this point. I am supposed to meet with her tomorrow to sign the paperwork to put the policies in effect, but I thought I'd throw the question out for any advice prior to meeting with her.

Thanks!
 


With the homeowner's company, the new company will possibly check with them for a loss run to make sure that no claims were "forgotten" on the new ap. They want to make sure that there isn't a history of instating a policy & then cancelling it a short while later.

With the auto company, once again, they may possibly check for losses. Also, again, about the cancelling of the policies.

There is a chance that the new company will not write your policy until they receive the information that they are requesting.
 

Happy Trails

Senior Member
JP_in_Colorado said:
What is the name of your state? Colorado

We are in the process of changing insurance companies for not only homeowner's but also auto because we are not happy with our current insurance company. We are not changing because of claims issues, but more because of general customer service issues. This new company is asking for copies of our policies with our current carrier. Is this normal??? I asked her why she needed copies of them, and she said that "they are a preferred company and the underwriter will need them." I asked, so they can re-rate us versus what we were quoted? She said "no," but I am feeling a little leary about why they would need our current policies. She also said for the auto insurance that they get copies of the policy make sure that someone doesn't just get insurance in order to register their car, then drop the insurance. They want proof that we have a policy in effect. Seems logical, but still odd. I've never had an insurance company ask for my current policy before they will insure me as a new customer.

Are there any reasons why they would need the prior policy aside from their "preferred company" status? If not, what should I say to this agent? I don't want to be re-rated for providing it nor not offered coverage because we don't provide it. I feel a little trapped at this point. I am supposed to meet with her tomorrow to sign the paperwork to put the policies in effect, but I thought I'd throw the question out for any advice prior to meeting with her.

Thanks!
**It seems to be more of the 'norm' lately. We had to provide proof of our homeowners insurance, when we recently changed auto ins. carriers. I thought they wanted to review it and possibly give us a better quote. When I asked the agent this; I was informed they don't carry homeowners insurance, it just gave me a discount on my auto.

**What are you worried about? Do you have proof or not?
 

tammy8

Senior Member
Quite standard that insurers require proof of prior insurance. Shows that you have never had a lapse.

And what are you worried about? Unless you don't have prior...
 
J

JP_in_Colorado

Guest
I do have prior insurance (home and auto) and I can provide the information. My only concern is them re-rating our premium because their rate is quite a bit less than our previous insurance company by several hundred dollars. I had just never been asked for prior coverage proof before, so I'm just being cautious. Thanks for letting me know that it is more of the "norm" now, so I won't worry about it. :)
 

Happy Trails

Senior Member
JP_in_Colorado said:
I do have prior insurance (home and auto) and I can provide the information. My only concern is them re-rating our premium because their rate is quite a bit less than our previous insurance company by several hundred dollars. I had just never been asked for prior coverage proof before, so I'm just being cautious. Thanks for letting me know that it is more of the "norm" now, so I won't worry about it. :)
**I only let them copy my cover sheet with the policy #..... I didn't let them see the premium I was paying to the prior company.

**I didn't think they needed any help as far as how much I was paying and could pay. :)
 
JP_in_Colorado said:
I do have prior insurance (home and auto) and I can provide the information. My only concern is them re-rating our premium because their rate is quite a bit less than our previous insurance company by several hundred dollars. I had just never been asked for prior coverage proof before, so I'm just being cautious. Thanks for letting me know that it is more of the "norm" now, so I won't worry about it. :)
I have never heard of an insurance company raising their rates to make your premium higher due to your old premium.

If the new company is that much less, I would ask the agent (or company) when the last time they had a rate increase was & when they foresee another rate increase.
 
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