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What criteria do insurance companies use when determining the cost of home insurance policy premiums?
Wiki User
∙ 16y ago
The factors can vary by jurisdiction (for example, some states do not allow "credit" to be used in rate determination) but as a general rule the following criteria are used: * Fire protection rating as determined by ISO (how effective your local fire department and fire safety codes are) * Age of home * Construction type (e.g. frame or masonry) * Roof type (e.g. composition shingles, tile, or tar/gravel) * Credit or "insurance" score of the named insured * Prior claim history of the named insured (many insurers do not surcharge for prior home claims, but ALL use them to determine eligibility) * Expected loss frequency and severity of your local area Property insurance can be a volatile line of business for insurers (think Katrina...) and rates will vary greatly between insurers and from area to area. Call several agents or independent brokers to compare rates. You might find that smaller regional companies are priced better than the larger national insurers. In my experience, they often handle claims better and faster too. Your state insurance commissioner will also be happy to answer consumer inquires about insurance laws, rating and specific insurer complaint ratios.
Wiki User
∙ 16y ago
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How insurance companies make money?
Insurance companies make money by collecting premiums and deductibles from customers. Not everyone will ever use their insurance policy, so the company profits from those cases.
Is insurance premiums for fire insurance an example of variable cost?
is insurance premiums for fire insurance an example of variable cost?
What is significant regarding premiums and benefits of private commercial insurance companies?
In any insurance scenario, a premium is the periodic payment made to the insurer by the insured. Essentially, it is the price paid to the insurer in return for which the insurer agrees to assume a certain bundle of risks of loss that the insured wishes to transfer. That "bundle" is set forth in the terms of the written insurance policy. Insurance premiums, and insurance generally, is regulated by the States in which the insurer transacts business. One the primary factors with which the regulator is concerned is that the premium charged is sufficient to offset the risk. It cannot, however, be either excessive or unfairly discriminatory. This means that insurance rates, from which premiums derive, must be the same for all insureds of the same risk class. Those risk classes vary greatly in commercial insurance due to the many and varied kinds of risks that can be insured.
How do insurers determine appropiate premiums for policy holders?
Premiums for insurance policy are comprised of: - A rating based on the vehicle make and model - Whether or not the vehicle has a loan - The age of the operator - The gender of the operator - The coverages selected including: liability, comprehensive, collision, uninsured motorist, personal injury protection and any additional policy features such as roadside assistance, or rental reimbursement. - In determining premiums discounts such as Accident free, or a good student discount are included - Your city and state - The number of tickets or accidents the policy holder has
What is an high price for insurance?
The price of insurance depends upon what you are insuring and how much insurance you want; there is no limit to the price of insurance. If you want to take out a billion dollar policy on the life of your husband, the premiums are going to be very high.
How are insurance companies funded?
Insurance companies' sources of funds are primarily policy premiums.
What criteria do insurance companies use when determining the cost of car insurance policy premiums?
Credit (except in California)Age of the driverGaraging location of the car.Method of payment (1 pay, monthly, automatci payments)Driving record (tickets & accidents in the past 3, sometimes 5 years).Type of vehicle.Type of coverage you get.Occupation of driver
Which companies offer the cheapest health insurance premiums?
"There are many companies that offer cheap health insurance premiums, but they vary for everyone. It depends on your health record and history. Some of the companies are Blue Cross and Humana."
Where can someone compare the premiums for different companies vehicle insurance?
Someone is able to compare the premiums for different vehicle insurance companies at a company called Progressive, where one is able to compare other top car insurance rates.
Why are musicians banned from car insurance?
They are not. Though many insurance companies charge them higher premiums.
Where could one compare motorcycle insurance premiums?
One may compare motorcycle insurance premiums at a number of the top insurance companies websites. One such company is Progressive, which offers the ability to compare your savings with the savings of other top companies.
Why does the insurance company get paid back the money Isn't that why we pay our premiums?
You pay premiums because insurance companies are a business and they are there to make a profit. Also, the premiums you pay go into a pool of money so the insurance company can pay out claims when necessary.
Does a motor accident claim drive up one's insurance premiums?
A motor accident claim will make one's insurance premiums go up. Most insurance companies will do this at the time of renewal though.
Which companies offer the cheapest luxury car insurance?
All major car insurance companies offer luxury car insurance. The premiums vary depending upon the year, the make, the model, the mileage, and the condition of the car and other factors. Your past driving record will also impact your car insurance premiums.
How insurance companies make money?
Insurance companies make money by collecting premiums and deductibles from customers. Not everyone will ever use their insurance policy, so the company profits from those cases.
Do you pay car insurance per month?
Most insurance companies will allow clients to pay their insurance premiums monthly, quarterly, semi-annually, or annually.
Which auto insurance companies offer safe driver car insurance discounts?
Progressive and Elephant insurance companies advertise how they reward good driving with partial refunds of insurance premiums. In general, all insurance companies offer lower rates to those with better driving histories.
