Listed are what insurance companies looking for and some common questions on insurance forms. Every company has their own underwriting department, another big reason to comparison shop as many insurance companies as possible. It is useful to know which answers will cost you and which won't. In addition to your regular name, address, age etc. you'll be asked you SSN (Social Security number) and VIN  (vehicle identification number). You need to have those two numbers available, without them, the insurance company will be unable to obtain your claims history, and without it they won't activate your policy.

• Try to answer questions as truthfully and as short to the point as possible.
• Don't explain or volunteer any information that is not asked for.
• There are people that talk themselves into higher premiums or rejection by volunteering information that would not have been asked.
• Have you asked someone the casual question, how are you doing today and they tell you, for the next 30 Minutes. You were being polite, right. You were expecting the answer "Fine" instead you got their life history.
• The point is: answer as short and to the point as possible. 

How Much Coverage Do You Need?
Usually, auto insurance policies have several sections, but only three are mandatory in every state: liability per person, liability per accident and liability for someone else's vehicle. A lot of states require drivers to take $20,000 to $30,000 of liability per person in an accident, with a cap of $40,000 to $60,000 per accident. That may not enough for some people. If you have more than $100,000 in assets, you should raise your coverage to $100,000 of liability per person and $300,000 per accident, plus $100,000 for property damage.
If you have over $200,000 in assets, consider an umbrella policy that covers anyone injured in your house or car up to $1 million or more. Such coverage as medical payment, rental car insurance and emergency replacement is costly and often redundant. A lot of insurance companies offer these extras. Also a lot of them will drop or raise your premium if you make a claim on such coverage.

Are You Married?
In the world of insurance, if you're 25 and married, you're as safe as a 55-year-old. If you're not, auto insurance will cost you more. Usually young singles pay at least 10% more for car insurance than their married peers. Being divorced also hurts with some companies.

Insurance Companies Ask Questions >>