Have you ever wondered why your insurance premium is a certain amount? Whether it’s for your car, pet, home, or business, insurance companies use a variety of factors to determine how much you pay.

RELATED: WHY DO INSURANCE PREMIUMS INCREASE?

 

The Key Factors That Influence Your Insurance Premium

We don’t just pull your insurance premiums out of a hat. It’s far more personal than that. Insurance premiums are carefully calculated based on risk, statistics, and your individual details. Here are some of the main factors at play:

  • Your Risk Profile: Insurers assess how likely you are to claim based on statistics. For example, younger drivers might pay more for car insurance. Pet insurance may be pricier for certain breeds, and business insurance for an online store may be more expensive due to transit or cyber risks.
  • The Value of What You’re Insuring: A brand-new luxury car will cost more to insure than an older hatchback. The same goes for a larger home versus a modest one and selecting higher or lower limits on your pet insurance.
  • The Use of What You’re Insuring: A car or building used for business activities is exposed to more risk and, therefore, higher premiums.
  • Location, Location, Location: Where you live or operate your business affects your premium. High-crime areas or regions prone to extreme weather may result in higher premiums.
  • Claims History: A clean claims history can mean lower premiums, while frequent claims may increase premiums.
  • Excesses: The general insurance principle is that the higher your excess, the lower your premium. So, if you have chosen a lower excess to avoid paying more when you claim, you may pay a higher premium monthly.
  • Cover Level: Comprehensive cover, such as our Ultimate Pet Plan, will cost more than our Accidental Plan. The same applies to dotsure.co.za car insurance, which offers tailored cover with Name Your Price™. This allows you to save by removing cover options you don’t need.

Psst… Find out exactly how your car insurance premiums are calculated here: HOW MUCH WILL MY CAR INSURANCE COST?

 

Premium Insurance, Premium Peace of Mind

At dotsure.co.za, we offer flexible cover, ensuring you get the best value for your money. Do you want a personalised quote? Get one today in minutes.

RELATED: HOW INSURANCE CLAIMS WORK