Insurance question

[bluepoole]

Nowadays, when getting quotes for car insurance, they always ask you for how long have you had uninterrupted car insurance in the past.

I can understand that the type of car, your address, how long you've had your license, your age, etc. influence your risk profile, but how does your insurance history affect it? It seems that the longer you have had it, the lower your premium is.

Say you have person A and person B, both need to insure the exact same car, they have the same address, driving experience, etc. Person A has had car insurance for five years, but person B has never had a car of his own, say he has been driving his mom's car. How is person B now a bigger risk in the insurer's eyes?

I am shopping around for car insurance, but cannot even remember which insurer I used ten years ago. It would be nearly impossible for me to go back and find out where I've had insurance, and for how long. So how do I now answer those questions truthfully? And if I say I can't remember, they will accept it but obviously put me at a higher risk then?

Your comments and input please!

 

[JStrike]

Insurance uses statistics of large groups. It is not based on individual behaviour, and isn't looking at "what if" scenarios.

If you can't prove your insurance history, yes, you will have a higher premium

 

[Pitbull]

Nowadays, when getting quotes for car insurance, they always ask you for how long have you had uninterrupted car insurance in the past.

I can understand that the type of car, your address, how long you've had your license, your age, etc. influence your risk profile, but how does your insurance history affect it? It seems that the longer you have had it, the lower your premium is.

Say you have person A and person B, both need to insure the exact same car, they have the same address, driving experience, etc. Person A has had car insurance for five years, but person B has never had a car of his own, say he has been driving his mom's car. How is person B now a bigger risk in the insurer's eyes?

I am shopping around for car insurance, but cannot even remember which insurer I used ten years ago. It would be nearly impossible for me to go back and find out where I've had insurance, and for how long. So how do I now answer those questions truthfully? And if I say I can't remember, they will accept it but obviously put me at a higher risk then?

Your comments and input please!

I would suspect there is a lot of people signing up for insurance and then it lapses in a few months. So statistically someone like that have a higher chance of being paid out way more then they contributed. If someone has had un-interrupted insurance prior then at least the companies can judge him/her as being "loyal" to a degree. And won't just stay for 2 or 3 months.

If that makes sense.

Edit: and as per JStrike, the other person will have insurance history that can be verified (Regarding claims and such)

 

[Ridolfc]

It is to determine your NCB: http://blog.easyinsuranceindia.com/index.php/2010/07/08/title