OK, so the last two questions may not appear on an insurance proposal form, but it is a common complaint among consumers that completing an insurance proposal form, feels something like undergoing some sort of interrogation. Although proposal forms are lengthy, they are that way for a reason.
Insurance companies keep extensive databases on the types of insurance they sell.
These databases have been compiled over many years and exist so that the premium that you pay reflects the true risk that your property represents. For home and contents insurance, questions such as the location of your property and security at your home enable your insurance company to assess the burglary risk , while questions about the age and construction of your home indicate the potential fire hazard. Again where and how you store your vehicle at night affects the likelihood of theft of your vehicle. If insurance companies did not keep these statistics and instead charged a flat fee, there is a strong likelihood that our insurance would actually cost more.