How much do you know about Insurance Premiums?

Do you sometimes wonder how your insurance provider determines your premium?  You’re not alone. Many people are unaware of the factors that go into calculating their insurance premiums.

Insurance companies take several factors into consideration when making a decision on how much a customer pays for coverage.

What is an insurance premium?

An insurance premium is the payment that individuals or businesses make to an insurance company in exchange for compensation should the customer experience a loss or damage to  his or her insured property.

Factors that determine your premium

Let’s explore some of the most important factors that go into determining your insurance premium for your motor vehicle and/or home:

Motor vehicle

1. Physical age and age of your Licence: Younger drivers are considered high risk due to their lack of driving experience, thus their likelihood to be involved in crashes. This explains why they pay a higher premium.                                                                 

• Driving Record: If you’ve been involved in a crash in the past and you made a claim, your premium is likely going to be higher. On the other hand, if you have an excellent driving record, you may be eligible for a discount on your premium.

• Vehicle make and model:  Newer or high-end motor vehicles are more costly to insure as they are more expensive to repair or replace.

• Type of Coverage: If you purchase comprehensive insurance that covers theft and other non-collision related incidents, you will pay more than if you purchased third party insurance.

Home

1. Home value:  The higher the value of the home, the more it will cost to insure it.

• Claim history: If you have a history of filing insurance claims, you may be seen as a higher risk thus you will be required to pay more for coverage.

• Building materials used:  A home made of concrete blocks is more durable and is less likely to suffer damage in a fire or other disasters than homes made of wood.

If you own a motor vehicle, home or contents, it is important to have insurance coverage to protect your property from unexpected events.

Get a quote, purchase or renewyour auto insurance online with JN General Insurance.  Your insurance will be processed fully online! It’s simple, convenient and hassle-free!

For home or contents insurance, call 876-922-1460 or send an email to info@jngijamaica.com.