Insurance Premium

How Your Insurance Premium
Is Determined?

Our goal is to explain to you how your Insurance Premium is determined and to help you find the most affordable insurance available.

• Loss Experience - The losses you have experienced for a specific type of insurance in the past.

• Loss Experience of Insurer - The loss experience your insurer has for a specific type of insurance. The better their loss experience, the better the rates they may offer to their insureds.

• Limits of Liability - The amount of coverage you request impacts the insurance premium you pay. Never request more insurance coverage than you need.

• Exclusions - Your premium will be affected by the exclusions limiting your coverage. Always be aware of the exclusions in your policy and how they will affect your coverage.

• Premium Payment Option - Your Insurance Premium is affected by the payment option you choose. An annual payment will usually be less expensive than a monthly premium payment.

• Type of Coverage - Your Insurance Premium will depend heavily on the type of coverage you need (eg. - Life, Health, Auto, Home).

• Rating - Your insurer will categorize you in most instances based on your application. This would include either a premium, standard, sub- standard or high-risk classification.

• Deductible - The deductible you choose will impact the insurance premium charged you for your coverage. A higher deductible may save you 10-20% in some cases.

• Location - Your premium will be impacted by the location of your residence depending on the coverage. Depending on the type of insurance Insurers have different loss experiences based on different regions of the country.

• Supply and Demand - The more providers of insurance the more competitive the premium. However, if your type of insurance is unique, then you may pay a higher premium for the coverage.

• Age - Your age may impact your premium. For example it would generally cost more for Term Life Insurance if you purchased it at age 70 than if you bought it when you were 35. Your age effects the risk to the insurance company.

• Gender - Your gender may effect your premium. Women drivers usually receive lower rates for auto insurance than men because they have better driving experience (fewer claims) overall.