How auto insurance without a profile works

When choosing car insurance, the insured can select car insurance without a profile or one with a profile. Understand the differences and learn the advantages of this type of insurance.

Collecting and analyzing the insured's profile is a step carried out by insurers at the time of quotation. Once this is done, the company will be able to declare acceptance or rejection of the potential client's insurance proposal.

Knowing a series of information about the client allows the creation of profiled and, therefore, personalized insurance. But it is possible to opt for another option: auto insurance without a profile.

Image: Getty Images

What is auto insurance without a profile?

In a nutshell, it is car insurance that is not developed using greater information about the insured.

In other words, it is not based on the analysis of specific data, the profile of the person requesting the insurance quote.

As a result, anyone who chooses auto insurance without a profile will only need to provide essential information about themselves and the vehicle (such as the owner's name, model and year of the car) when submitting their insurance proposal.

The proposal to be presented is that document with various details about the owner and the car that demonstrates to the insurer your interest in taking out insurance with them.

The more information you provide to the company, the more it will be able to personalize car insurance, offering the necessary coverage.

In the absence of a profile assessment, car insurance tends to cover few situations.

So that you can understand how car insurance without a profile works, it is interesting to compare it with the other option, insurance with a profile, to learn about its characteristics. So, let's explain a little about it.

Auto insurance with profile

This type of insurance works with various data, in addition to fundamental information, about those who want to take out insurance and their car.

Therefore, when making the quote, the insurance company will calculate the price by evaluating the vehicle's usage habits, the history of accidents, the place where the car drives and where it spends the night, the driver's age, their marital status, the existence or not of children, vehicle mileage, among other information that the insurance company deems relevant.

This set of information profoundly influences the insurance to be presented.

This is because, based on this data, the insurer will know how to personalize and offer insurance that includes the most appropriate coverage to the demands of the motorist and his driver.

The greater amount of coverage contracted results in an increase in the total value of the policy.

The company will also know what amount to charge based on the risk index that the data revealed. The greater probability of an accident occurring, which in formal terms is called accident rate, will increase the cost to be paid by the insured.

Car insurance without a profile in practice

Insurance without a profile, as we have already mentioned, does not have an in-depth analysis of those who wish to take out the insurance.

The lack of information at the time of the quote generates particularities in relation to the option with profile study. The main differences would be in price and coverage.

Price of car insurance without a profile

Without further information about the habits and conduct of the potential customer and their vehicle, the amount of insurance (the premium) tends to be lower compared to profiled auto insurance. Cost reduction can be seen as a positive aspect of this modality.

Another factor that changes the price is coverage, as it tends to be smaller and simpler.

Roof

Generally, this variety of insurance only covers theft and theft events. Therefore, any accident event that does not fall into one of these situations will not be covered.

However, it is possible to request the inclusion of additional coverage at the time of contracting and, thus, bring auto insurance without a profile closer to your needs.

Tracker

When opting for car insurance without a profile, it is important to know that there is the possibility of needing to install a vehicle tracker.

This is because there are insurance companies that make installation mandatory in vehicles insured under this modality.

There are also companies that do not require installation.

Alternative for those who have had their insurance application rejected

The no-profile option can be advantageous for those who have had their insurance proposal rejected by many insurers.

For example, if your proposals are denied due to your extensive accident history or some other factor considered negative, choosing auto insurance without a profile may be an alternative.

However, the best measure, in this situation, is to find out what has caused the refusals and try to resolve the issue.

Now that you know how auto insurance without a profile and with a profile works, our tip is to think about which one suits you best and, when other questions arise, talk to your broker and take the time to get quotes.