The Factors

Below is a list of some of the cost factors in auto, home, health and life insurance underwriting, and describes what insurers think about when they set the price of a particular policy. 

Homeowners insurance cost factors: 

Your credit history/insurance score
Deductibles
Claims history
Size of home and surrounding structures 
Local building costs 
Natural disaster risk 
Condition of heating, electrical and plumbing systems 
Proximity to fire station/hydrant 
Amount of crime in neighborhood 
Home’s construction, materials and architectural features

Auto insurance cost factors:

Age 
Type of vehicle
Retirement status 
Marital status
Driving record 
Credit history/insurance score
Deductibles* 
Education level
What you use your car for 
Military service
Where you live/where you park 
Whether you have had continuous coverage
Vehicle specifications
Claims history
Education level, grade point average (GPA) 
Occupation

Health insurance cost factors:

Age
Occupation
Deductible and copay amounts
Previous denial of health coverage (within past 12 months)
Previous hospitalization (within the past 5 years (excluding pregnancy) 
Ongoing medical treatments    
Pregnancy
Smoking
HIV/AIDS 
Heart attack
Stroke
Diabetes 
High blood pressure 
Depression requiring medication
Cancer 
Asthma 

Life insurance cost factors:

Age
Occupation
Amount of insurance—death benefit amount
Type of policy—permanent (also called cash value) policies generally cost more than term policies.
Hazardous hobbies—e.g., skydiving, mountain climbing, alligator wrestling
Previous hospitalization (within the past 5 years (excluding pregnancy) 
Ongoing medical treatments    
Pregnancy
Smoking
HIV/AIDS 
Heart attack
Stroke
Diabetes 
High blood pressure 
Depression requiring medication
Cancer 
Asthma 

What’s a deductible? In the event you file a claim, your deductible is the amount you pay before your insurer starts paying. 

Network Marketers Logo
The Cost of Insurance