Premiums Explained

I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster.

A premium is the amount you pay an insurer for insurance cover.

It reflects what the insurer believes is the likelihood you will make a claim. It also includes an insurer’s business costs, and may also reflect the benefits of any discounts or bonuses the insurer may offer to you.

What may influence your premium?

When your insurer calculates your premium, it is likely to take a range of factors into account. These factors will change from person to person.

Some key factors influencing your premiums may include:

• Type of cover selected
• Any optional benefits you have selected under your policy
• Discounts you are eligible for
• Previous claims and incident history

Balancing premium prices

Working out the correct price for insurance premiums is a complex process that must balance the availability of funds, the likelihood of certain claims (the risk) and the ability for the pool of money from all insurance premiums to cover the cost of claims.

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article here and share your thoughts with me afterwards: call on (07) 3243 0000 or email me at [email protected].

Thanks,

Mark