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.
The amount you have to pay is shown in the policy schedule, which the insurer will send you when the cover has been arranged.
Insurers each make their own commercial decisions when deciding how much to charge each person who wants to cover certain risks for something valuable to them.
For example, when you apply to insure your car for a comprehensive or a third party property policy the insurer will decide how much that particular car is worth (market value) and what risks are worth insuring. The insurer may also allow you to nominate the insured value of the vehicle.
Why would my Premium change?
Your premium is likely to change each time you renew your insurance, even if your personal circumstances don’t appear to have changed.
This is because premiums are affected by many factors, including the cost of doing business and changes to the way your risk has been assessed.
Sometimes premium prices will go up across the board, and sometimes your own premium might go up because your level of risk has increased. But if something helps to reduce the risk, this may be taken into account with a lower 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:
Capita Insurance Brokers Inc.
Co-operators General Insurance Building,
Contact: (246) 434-3245
Sign up for Promotions and Savings