What does it mean for insurance to be underwritten?
Question by Adam H: What does it mean for insurance to be underwritten?
I have a quote submitted to Hagerty Collector Car insurance and they told me that it is being underwritten, what does that mean?
Best answer:
Answer by Colleen
Underwriting happens in EVERY kind of insurance. What that means is that the companies “underwriter” assesses all of your information and writes up your contract accordingly. EX: Health insurance… If you smoke you pay more because your a higher risk. EX: Life insurance… If you sky dive they charge a higher premium in case you go splat. It is a legal way of telling you that they are in the process of writing up your contract before your approved for the insurance.
What do you think? Answer below!
Related posts:
- Does anyone have experience with Hagerty Insurance on classic cars? Question by rebajg: Does anyone have experience with Hagerty Insurance...
Comments
It means, someone is going to look at your application, and the information and photos you submitted, and make sure they want to give you car insurance, and that you qualify for their program.
Underwriting is the process where RISK is assessed. When you apply for a mortgage the underwriter assesses the risk of your default on the loan (which is why your credit score is important). With life insurance the underwriter assesses the risk of your dying. With health insurance and disability insurance the underwriter assesses the risk of your morbidity.
Leave a Comment