Premiums refer to the amount you pay for an insurance policy – either annually or monthly. To calculate your premium payments, there are a few key factors you should consider:
Your age: Your age and health play a role in determining the cost of your insurance premiums. Generally, the older you are, the higher your premiums will be, as you’re deemed to be at higher risk of making a claim.
The type of cover: The cover options you choose will affect your premiums. The more comprehensive your cover is, the higher your premiums will be.
Your health: Your health plays an important role in determining the cost of your premiums. Your insurer will assess your health history and current health condition to determine the level of risk of you making a claim; based on your risk level, your premiums will be priced.
Where you live: One of the largest factors impacting your premiums is where you live. Claims experience in a certain area can mean that insurers may charge more for cover in an area where they’ve had more claims than the average.
Discounts: Many insurers offer discounts if you have a clean driving record, add multiple vehicles or drivers to a single policy, or combine multiple insurance products. Consider any discounts to reduce your premiums.
You can use an online insurance calculator to estimate your premiums and compare different quotes from different insurers. It’s important to note that the final premium price may differ from the one originally quoted. This is due to factors such as incorrectly estimated risk, non-disclosure of medical history and change of status.
It’s important to shop around for insurance and compare different insurers for their coverage and premiums. Different insurers will charge different rates for the same cover. You may find that one insurer looks more attractive than another in terms of the level of coverage and cost of the premiums. If you’re unsure, speak to a broker to discuss your specific needs and ensure you’re getting the best deal.