How Do You Know if You’re Insurable?

 In Blog

Insurance companies evaluate a variety of factors to get an insight into your insurability.

5 Factors That Are Considered to Determine if You’re Insurable

When you approach an insurance company for coverage, the insurance company needs to determine your insurability and evaluate certain factors to calculate the appropriate pricing for you. How do they do this? Although not every insurance company follows the same “recipe”, these are five of the most common factors that affect the cost of your insurance.

Personal Information

Insurance companies have a target customer profile. There is certain criteria that they consider crucial in order for them to do business with potential customers, which is why they are likely to take a close look at your personal information, in order to identify if you’re a good fit.

Credit and Financial History

Most insurance companies will be interested in checking your credit. How you manage your finances is a good way to predict insurance claims and helps to better understand the kind of policy you qualify for.

How Do You Know if You're Insurable?

Your driving record is relevant to determine your insurability.

Driving Record

Speeding tickets could take a toll on your insurability and could also impact your insurance rates. There are some insurance companies that have policies against insuring someone who has too many tickets or claims. This could result in you having to pay really high prices for insurance coverage, or look for another company that takes in high-risk clients.

Use of Car

Is your vehicle always on the road? Do you use it for business? Is more than one person driving your car? All these factors are taken into account to calculate the risks of having an accident. If the car has many drivers, the risk of accident increases, and the same thing happens if it has very high mileage on it.

Insurance History

Do you pay your premiums in a consistent manner? How long have you been insured? How many claims have you filed? Have you ever been canceled for non-payment?


Not all insurance companies examine their potential customers in the same way. Whenever you decide you need insurance, it’s good to be able to compare products and prices. AAI Central Agency is an independent insurance agency in Colorado that represent some of the top insurance companies out there. Contact us and talk to us about your insurance needs, and we’ll be happy to help you find the right insurance products for you.

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