General insurance Reasons why insurance premium differ in price?

[sincerem]

If you're accustomed with insurance, you'll come to understand that insurance company's policy plans are different in their prices. Those who aren't familiar to insurance but are willing to enter into insurance will ask, what really made insurance to charge higher premium for some policies?

When it comes to company or business products, they have different prices, it doesn't mean they are the same products, some are different, some have better more quality than others which the company sees as big difference to the lower fancied type. That's exactly the same case with insurance company policy plans.

Some policies have higher benefits than others, and insurance company increased its premium charges in order to cover up those expenses when the need arise.

 

[Mataracy]

Thanks for the explanation given. Its make me to understand now that some insurance company charge higher while some charge low.
I belief that charging low sometimes might not mean that that company can not perform well.
In fact some insurance company may charge high and their policy might not quality as one thought.

 

[btaliat]

Just like you said, the benefits to be derived from a policy, together with the value of what to be insured. For instance, there will be higher on a person that wants to insure Ferrari compare to a person that intends insuring Toyota. This and some other factors do determine the price of the premium

 

[Mandy96]

Who would have thought that insurance has price difference. I have always thought insurance prices are fixed but I think the prices differ from each other due to the importance of the particular type of the insurance the individual is trying to buy from the insurance company. This is my opinion

 

[Nite]

Every insurance company assesses the risk differently and according to that they decide the premium. It's also like affordable prices for a product attracts more customers, here too affordable premiums for the same benefits will attract more clients. So some company charge lower premium to gain clients, while some will continue with their premium pricing.

 

[Wisdom01]

Yeah I think different risks comes with its own insurance premium charge attached , if they should put a fixed charge for all the insurance cover , the insurance company would end up in loss ,so they chose to split everything and be able to cover the risk properly too

 

[sincerem]

Thanks for the explanation given. Its make me to understand now that some insurance company charge higher while some charge low.
I belief that charging low sometimes might not mean that that company can not perform well.
In fact some insurance company may charge high and their policy might not quality as one thought.

Every policy of a given insurance company depends on the benefits it brings to the insured. That's why they state everything an insured needs to know before going on with any of the insurance premium policies around. The reason is because, some premium pay is higher than others when it comes to the insured being covered by such insurance plan.