Contributory database solutions that contain robust data, such as business use of a vehicle, are very useful tools for gathering key information about prospective insurance customers. It is a given that the more you know about an applicant, the better you can assess potential risk and price appropriately―or decline coverage altogether. Insurers routinely use data related to an applicant’s current and prior policy tenure, policy limits, and lapses in coverage to glean revealing insights that can help them make better decisions regarding future risk and insurability. Information about a vehicle’s policy history can also be predictive of future use.
As it turns out, business use of a vehicle is often overlooked as a key indicator, despite its potential to being a revealing piece of data. While a potential insured might not give this detail much thought, it can have a direct impact on insurability. Often the lines between personal and business use can be blurred. For example, was the vehicle used to carry tools for the applicant’s job, or to deliver flowers or haul freight across a region? Was it used as part of a carpool among coworkers or as an income-generating ride share? These factors are relevant in determining the right coverage.
Knowing whether an applicant has used their vehicle for business purposes can have a significant influence over how you rate that applicant and can impact underwriting decisions in the present and future. Having that vehicle policy history at the time of inquiry helps you determine if you need to delve deeper with a potential insured to make sure you’re providing the right coverage for the right purpose and pricing the policy accordingly.
But how can you obtain this valuable information ahead of time, before you make a decision? Will your applicants tell you if they’ve used their vehicle for business? Maybe…but there’s a better way. Relying on a robust contributory database solution that provides key information, including business use of a vehicle, can help you make more informed decisions that better serve your customers and benefit your bottom line.
Through the Business Use indicator field, LexisNexis® Current Carrier lets you know that a vehicle was used for business purposes in the past. Data available to you through the Current Carrier contributory database solution includes policy holder names, vehicle information, term dates, coverage limits, deductibles, lapses in coverage…and whether the vehicle was used for a business purpose.
Knowing about business use of a vehicle at the time of quote gives you the opportunity to further explore vehicle use with your applicant to offer a more accurate level of coverage for their purposes and to better protect your business from an unknown risk. Don’t be blindsided later because you didn’t have more useful information at the outset to make better underwriting decisions. Contact us today to learn more.