All you need to know about insurance
The Cost of Insurance: 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.
SAVE - "To set aside for heretofore visionary immoderations" ....Wally Pike
