Many people accept insurance payments as a part of life, but many don’t know how their insurance premiums are actually determined. Insurance companies use large amounts of in-depth research and historical data to determine their rates, so knowing these factors can also help consumers avoid costly risks in a number of ways. This article will help enlighten you on the many factors that influence your insurance premium that you would never think would impact your rates, such as dog ownership, smoking, weight and blood pressure, pregnancy, education and career, driving record, car model, homeowners claim history, hobbies and lifestyle, and your zip code.
While it’s pretty self-explanatory that a history of claims or a bad driving record increases your insurance premium, some people may find it surprising that an aggressive dog may be a basis for non-renewal or an increase in premium over time. Knowing how your insurance company determines risk often motivates people to make strategic, wise decisions when it comes to big purchases, such as obtaining Massachusetts homeowners insurance, car insurance, or life insurance.
While this article may explain some of the sticker shock you may – or may not – encounter, the H&K team considers themselves skilled value hunters finding the best combination of coverage for the right price. We don’t stop at one option, we give you multiple options. Contact us today to get a personalized quote guided by the personalized touch of one of our agents.