You could be Paying More Premium than You Need to
General insurance is every type of insurance barring life insurance. A general insurance company offers insurance online and offline. General insurance includes motor insurance, home insurance, health insurance, marine insurance, travel insurance, etc. A general insurance company provides coverage in case of loss or damage to the insured individual or the insured individual’s valuables. In some countries, general insurance is called property and casualty insurance.
As in the case of life insurance, the insured individual needs to pay a premium to the general insurance company either monthly, quarterly, or yearly. A premium is the amount charged by the general insurance company to the insured individual for taking the risk of damage or loss. The premium depends on a number of factors. However, there is a chance that you could be paying more premium than you need to because of these following factors:
1) Your location - Where you live significantly affects your premium. A general insurance company will usually use your zip code to determine how at risk you are when it comes to vehicle theft, damage to property, etc. For example, if you live in a city like Mumbai, your premium will be higher than a quiet place like Nashik because crimes and accidents are more likely in larger cities than smaller ones. The area of commute can also impact your premium.
2) Your gender and age - If you are less than 25, you could be paying more premium than you need to because insurance companies think that younger people get into accidents more. Senior drivers, especially after the age of 65, also have to pay a higher premium because the risk of accidents as well as health problems goes up as you age. Also, it is proven that male drivers who are less than 25 get into more accidents than female drivers.
3) Your previous insurance record- Going without an insurance plan could easily hike up your premium. If you have a record of making claims, then the insurance company might set you up with a higher premium due to the higher risk. Even if you miss your renewal deadline, the general insurance company could increase your premium and you would be paying way more than you need to.
4) Your add-ons - Add-ons increase the premium significantly. Relevant add-ons are extremely useful when it comes to protecting the car or the no claim bonus; but, extra add-ons will only be a bane to your premium in the long run.
5) Not buying insurance online - Not buying insurance online can also increase your premium because insurance companies generally charge more offline. If you know exactly what you want and you understand the product, it is more beneficial to buy insurance online so you can compare prices of different insurance agents.
Thus, your location, your gender and age, your previous insurance record, your add-ons, and not buying insurance online are all factors that could make your premium go up. We hope this article was helpful and insightful! Remember to do your research and stay safe! Good luck!
