Info On Insurance Premiums

Understanding Insurance Premiums

Understanding What You Pay For Coverage

Did you know that your personal information is not run through an algorithm to arrive at your insurance premiums? Rather, the process of determining your premiums is subjective (which makes sense, as different insurers will offer you different rates). So you can best understand what goes into your premiums and how you can control them, consider these facts.

  • You Affect Your Premiums: When an insurer decides how much it will cost to cover you, they have to appraise what level of risk they assume in taking you on. That is why a clean driving record will result in lower auto insurance premiums, and a home filled with expensive items that could attract a thief could cost more to cover.
  • You Can Change Your Premiums: If you are unhappy about the insurance premiums, you can change them by raising or lowering your deductible. Bear in mind, though, that significantly raising your deductible could end up hitting you with a big expense down the road even as it saves you money month over month.
  • The Weather Affects Your Premiums: Catastrophe weather losses play a huge part in the amount you pay for your policy.  The expense of all those roofs being replaced every 5 or 6 years because of hail will cost the insurance companies a bundle. Consequently, you may see a bump in your premiums after a rough year of weather.

Do you have a team of expert agents on your side, informing you about the premiums you pay? Serving Carrollton, North Texas, Coppell, and all of Texas, contact Mike Leonard Agency for all of your insurance coverage needs. With over 30 years of industry experience, we are here to make sure you have the protection you need, and that you understand it.