I gave my broker some basic information so I could get a quote. The indication looked good, so I filled out an application to firm it up. Now the quote has doubled in price. What happened?!
No one likes paperwork, at least no one that I’ve met. However, it’s a necessary evil when it comes to applying for something. College = essay, job = resume, insurance = application. As with anything involving an application process, you’re only as good as the information provided. If you want it to stand out, you provide as much detail and information as possible.
The opposite is true, too, and both apply to insurance applications. Trust us, we don’t like hounding people for them any more than people like filling them out. At the same time, it’s the only way to have attestable information in relation to what’s being applied for. If you tell us you need an indication on a $150,000 Bonanza, we can get you that. If you tell us you’re an ATP-rated pilot with 2,000 hours in a Bonanza, we can get you that too, and it’ll be much lower. By contrast, if we’re told to get an indication and prior loss history isn’t disclosed or inexperience isn’t mentioned, you’re going to be surprised when the application is reviewed.
Premium indications are only in the ballpark if there are no surprises after the fact. Applicants can’t withhold information simply to get a lower premium, that’s called misrepresentation and is grounds for cancellation and/or claim denial. The more thorough the application, the more accurate your premium and the more favorable you’ll be seen by carriers. Our processes keep the paperwork to an absolute minimum, but they don’t eliminate the necessity!