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Insurance 101- The Learning Curve Series: What Factors Make Up My Insurance Pricing?
February 5, 2009 by Scott Richardson · 2 Comments
There are many Factors the go into the Pricing of an Insurance Policy. Some of these are age of the home, location to fire protection, condition of the structure, presence of hazards, Insurance Scoring which may include credit, prior claim history, and building materials.
Many companies give great discounts for having protection such as smoke alarms, deadbolt locks, and fire extinguishers. Also discounts for having both the Home and the Auto Insurance with the same company.
For more information contact an Insurance Agent.
Can you give me an example of how the pricing would impacted based on this. Maybe using a fictious person, work up a rate quote based on a certain set of criteria and then show how the pricing would be impacted based on age, location, smoke alarms, deadbolts locks etc…
I know we all hear that these impact the insurance quotes, but what is the ROI of adding these items to one’s home. Does the cost of adding deadbolts actually bring down premium’s enough to justify it?
I know when I got my auto insurance quote years ago, my insurance person asked if I had side airbags, anti-lock brakes, etc… However I never found out how much it actually saved me on my insurance. In this case I got the bells and whistles because of safety for me and my family while driving and not because it would impact my insurance rates. Also one normally doesn’t retofit an existing car normally to save on insurance rates, however with a home that could be different.
Thanks,
Glenn
Wow, talk about a difficult task. Each company has different discounts. Protection discounts are usually range 5-20% depending on what kind of devices you install.
The age of the home discount may range from say brand new 20% to maybe 0% after a set number of years say 10 or 20. Each company has different ones. My next blog should be how to shop and compare Insurance.