When it comes to premium that are to be paid by insured, a lot of factors are considered and come into play. So what are the factors that influence the rate of premium for each insured. The key factors are:
Coverage type
They are always different options give by the insured when you purchase an insurance policy. The fact is the more comprehensive coverage one needs, the higher the insurance premium. A purchase of all risks coverage home insurance policy will be more expensive than a basic home insurance policy
Amount paid for a coverage
When you are paying higher amount for an insurance which can be on any policy whether car insurance or health insurance. The insurance company will give you more money to pay for higher amounts of coverage. like a house you insure for $150,000 will have a different premium compared to the one you are insuring for $400,000. So this simply means that the more dollar value you want to insure, the more expensive the premium will be.
Applicant Personal Information
Your personal Information or insurance history plus where you live etc can influence your premium amount. A crime prone area for homeowners insurance can bring increased premium because of location.
Personal factors
insurance can also look at one's credit rating, occupation etc . This personal information can influence ones premium payment either higher or lower.
Coverage type
They are always different options give by the insured when you purchase an insurance policy. The fact is the more comprehensive coverage one needs, the higher the insurance premium. A purchase of all risks coverage home insurance policy will be more expensive than a basic home insurance policy
Amount paid for a coverage
When you are paying higher amount for an insurance which can be on any policy whether car insurance or health insurance. The insurance company will give you more money to pay for higher amounts of coverage. like a house you insure for $150,000 will have a different premium compared to the one you are insuring for $400,000. So this simply means that the more dollar value you want to insure, the more expensive the premium will be.
Applicant Personal Information
Your personal Information or insurance history plus where you live etc can influence your premium amount. A crime prone area for homeowners insurance can bring increased premium because of location.
Personal factors
insurance can also look at one's credit rating, occupation etc . This personal information can influence ones premium payment either higher or lower.
