An insurance policy number is simply a list of names, numbers, or both, usually separated by commas. It’s usually listed on your auto insurance card or your insurance binder when it issues you a new policy.
You’ll notice that in the “Terms of Use” section of an insurance company’s website, they often list out the policy numbers of their policies. Your car insurance provider assigns a particular policy number to you once it issues you a new policy.
Many insurance companies give out two-digit policy numbers, like “PPN-1050.” This means that there are ten digits on your policy, which are also the same as the ten digit ones that you’ll see on your vehicle insurance policy card. The difference between a ten-digit policy and a nine-digit policy is that a nine-digit policy can only be transferred to a new company after it expires.
Insurance companies usually assign policy numbers based on what the insurance company expects to pay. There are a lot of variables that play into your premiums and policies, including the age and sex of the drivers in your family, where you live, where your vehicle is located at any given time, the number of vehicles owned, and how long you’ve been driving.
Most insurance companies will assign a nine-digit policy number when you get your first policy from them. If you have a car, you should always check this out. Some insurance companies may change your policy to a ten-digit number, but there are a lot of reasons why they might do so. You will know if your current insurance company has switched your number out because of one of the following reasons:
Decreased Coverage Type – Most insurance companies charge you a higher premium every year if you switch your coverage type to “annual coverage only.” The reason behind this is because your current policy includes all of your vehicles and is called “standard coverage.” Standard coverage gives you just about everything that you would ever need in order to drive safely on the road. The only reason that your premium will decrease is if your policy allows you to add more vehicles onto it.
Increased Coverage Types – Many people choose to switch to a more expensive insurance policy every year, regardless of the coverage types that they already have. A lot of people who purchase high-end vehicles want to increase their coverage levels. They also need to make sure that the vehicle that they are driving meets minimum requirements in order to keep the insurance rates low.
These are just some of the reasons why the insurance company may alter your policy numbers. Before you take action, talk to your agent about your policy and ask questions. There are also a few other things that you can do to increase your odds of getting the right number for your next policy.
For example, if you’re purchasing a policy for your teenage son or daughter, get them a policy with a five-year term, not the two-year policy that you normally receive. This will allow you to change the policy when you are no longer able to pay your current premium.
Ask the insurance company why they have decided to assign the same number to each policy. There are a lot of insurance companies that have different policies, and your current insurance company might be one of them.
Change the policy that you currently have before you buy another policy from the same company. It’s not always because of your current premium rate. Sometimes it will simply be because of the change in coverage type that your new policy provides. Also, most insurance companies charge more money to change to a higher coverage level than they charge you for a lower coverage level.
Don’t forget that changing your insurance coverage number can have a profound effect on the amount that you pay. In fact, most insurance companies have no way of stopping you from changing your number, so you should really consider it before you buy your next policy.
