|
|
|
« Back to FAQ |
Next Question » |
Question 3 of 3 in Pricing Policies |
What are some of the insurance company factors that affect the price of insurance? |
 |
The primary factors which affect an insurance company’s rates for homeowner’s or renter’s insurance are the individual company's loss experience and its administrative expenses.
When an insurance company suffers a tremendous amount of losses (loss experience), the company may run low in its reserves and need to raise rates to make up for the suffered losses. Conversely, some insurance companies only insure "better" risks and have a low loss ratio, enabling the company to offer lower rates.
Another major factor is an insurance company's administrative expenses. The cost of personnel, marketing, and sales expenses have a major impact upon the price of insurance. A recent trend of insurance companies is to offer insurance direct to you, thus reducing costs by not having to pay sales commissions to insurance brokers/agents.
|
|
|
|
|
|
Home Owners/Renters Insurance Center
Auto | Homeowners/Renters | Health | Life | Site Map | Privacy Policy | Media | About Us | Contact Us