Underwriting Guidelines for Auto Insurance

Underwriting is the process insurance companies use to select and classify an applicant's risk. Insurers use their own underwriting standards to determine if your business is eligible for insurance and, if so, what price you should pay for the coverage.

When you apply for auto insurance, your driving record will not only affect your rates, it may also cause you to be denied insurance. Wisconsin law does not permit insurers to exclude drivers by endorsement. They are permitted to rate based on all members in the household regardless of whether they are related by blood or marriage.

Wisconsin law does not require insurance companies to extend a grace period for auto insurance premium payments. If payment is not received by the due date, the insurance company is permitted to cancel your auto insurance policy for nonpayment of premium.

When replacing your automobile policy with another company, be aware that the new company has 60 days to underwrite (examine, accept or reject) your application. This may include securing motor vehicle, credit and claim history reports, as well as verification of other information provided on the application. Your policy can be canceled during the first 60 days for any adverse information, such as accidents, violations, suspensions or prior claims.