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By McDonald Kang'e
Insurance premiums increase because of the following reasons
Consumer Price Index (CPI)- to cater for inflation
Fraud and Malpractice- These drive the costs up
Human factors like reckless driving and overspeeding
Government or statutory body regulations- where the government determines the price
Increase in the cost of service delivery eg heath care
Company Board of directors- when they demand high returns on investiment and high PBT ratio.
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∙ 12y ago
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What causes insurance premiums to increase?
Increased risk.
What happens to the premium when the deductible is lowered?
If you increase your deductible you are therefore retaining more of the risk upon yourself and therefore the insurance company will reduce your premiums.
Does getting a ticket for stop sign violation increase insurance premiums?
Yes , All moving violations can cause an increase in your premiums.
Is this statement true premiums for term life insurance decrease as people get older?
No, premiums for term life insurance typically increase as people get older because as they age, they are considered at a higher risk of death and therefore more expensive to insure.
What is the formula for real risk free rate?
Risk-Free Rate= Norminal Rate Of Return - Risk Premiums
Does premiums increase due to DUI?
You can bet on it.
Can insurance company increase your premiums retroactive?
No, Insurance Company cannot increase premiums retroactive. It has to declare before hand from which date the increased rate of premium would be operational.
How do insurer determine appropriate premiums for policyholders?
by evaluating risk classifications
What effect will 95mph in a 60mph speed limit have on your insurance?
Your premiums will increase.
Did your premium increase when you canceled the claim process and paid for the damages yourself or left it damaged?
Any time you file a claim you run the risk of your premiums raising due to the labor the insurance company put into your claim.
How much do speeding tickets increase premiums?
$41.92 Just kidding. There is no way to tell you exactly how much a ticket will increase your premiums. It depends on how many tickets your have on your record, and many other factors that affect your premiums. Some companies will not charge you for the first ticket you get as long as it's a minor violation.
What are equitable premiums?
A premium that is justified basis the amount of risk that an insured brings on to the insurer.
