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Actuarial risk. Insurance companies look at whatever factors they deem are relevant to the risk and statistically determine how many incidents they should expect to pay for and what that costs. They then add it costs and profit. They can be amazingly accurate when they have a large number of policies (the rule of large numbers). Example for auto insurance: Age
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Is insurance premiums for fire insurance an example of variable cost?
is insurance premiums for fire insurance an example of variable cost?
What does insurance premium mean?
The premium is the cost that you must pay to have the insurance.
How is price determined?
Cost of the item + Desired Profit = price.
How high is the cost of income protection insurance?
The cost of income protection insurance varies. It is dependent upon several variables and factors that will be unique to each situation.
How is the worth of your home determined for homeowners insurance?
The worth of your home is usually determined by size of the house, property and the area you live in. They can also check how much houses in your area of around the same size sold for.
Cost of insurance for Chevy Silverado pickup?
The cost of insurance for a Chevy Silverado pickup is not a set price. The cost is determined by the driver, the company, and the coverage needed.
How much is insurance for a company vehicle?
The cost for insurance will be determined by the location of the vehicle as well as the type of vehicle.
How much does builders risk insurance cost?
How Much Does Builders Insurance Cost?Builders insurance is usually 1% to 5% of your total construction budget. The accurate cost of insurance is determined by the required level of coverage and the insurance company you have chosen.
What is the average renters insurance cost?
The cost is determined by a few things. Credit is a big one. If it is your first place, your insurance may be higher if you have no credit established.
How much does general liability insurance cost for a fire sprinkler inspector?
The cost of insurance is determined by too may factors for it to be effective to answer this question with a specific number. If you are interested in understanding what GL insurance is and how it is priced, check out the link attached to this post.
How much does car insurance cost for an 18-year-old?
There is no set price for car insurance for an 18 year old. The amount will be determined by the car insurance company, and the person's driving record.
What is the average cost for luxury car insurance?
There is no one rate for insurance. It is determined by age, driving record and the state in which the insurance is written in. You will however pay more on a luxury than a regular car.
Best available swift car insurance, worthwhile.?
Insurance is always worthwhile. What is "best" is up to the individual user, and the cost is determined by a number of different factors, but insurance is an absolute must for any driver!
How much is the insurance on a 1991 Mustang?
If an individual is wanting insurance on a 1991 Ford Mustang, he or she must be aware that the cost of insurance is variable. For instance, the cost of the insurance will be determined on the driver's age, the driver's record, and other factors. Some drivers will qualify for insurance which is significantly less than others. Additionally, a person must decide if they want the 1991 Mustang to be fully coverd or only covered by liability. Full coverage will cost more.
What is the average insurance cost for a home?
There is no such thing as an average home insurance cost. Every house has it's own risk factors. The cost of home insurance is determined by many factors such as your region, past weather history of your area, the owners credit rating, number of claims you have filed in the past, number of claims filed on the home in the past, etc, etc,
Why is it your fault if you have no collision insurance?
Fault is determined by who committed a driving infraction, not who has insurance. If you have no collision insurance, you are responsible for the damages to your own vehicle unless another driver is determined to be at fault.
The cost for insurance for a freightliner cascadia?
You have to have 1 million in liability insurance for a CMV. Make and model doesn't matter.. pilot cars which escort oversize loads have the same insurance requirements. The rate is determined based on your experience and driving record, which is why it's better to call insurance companies and get a quote.
