What is Insurance premium?
Insurance Premium is paid as a cost to cover a possibly unseen devastating loss.
It is the actual amount of money charged by insurance companies for active coverage.
An insurer is the company selling insurance and insured is the policy owner. Insurance
is a form of risk management primarily used to hedge against the risk of a contingent
loss. The insurance rate is a factor used to determine the amount (called the premium)
to be charged for a certain amount of insurance coverage. Insurance premiums vary
widely among insurance providers, so it is advisable to get several quotes from
various providers before committing. Both the Voluntary Excess and premium are inter-related.
They are part of the amounts to be paid for the coverage. When the Excess is high,
the premium is automatically low and vice versa. These two parameters affect the
cost of the insurance you purchase. Other articles on Car Insurance
- Motor Insurance Overview
- 10 Hot Tips to Reduce Premium
- What is Car Insurance?
- Typical Ways to reduce your premium
- Why Car Insurance?
- Finalizing the best deal - Car Insurance provider and the Car Insurance
- How to claim Car Insurance
- Types of Motor Insurance
- Car Insurance FAQs
- When a claim is rejected?
- What does Car Insurance Cover?
- What to do in case of Accident?
- Car Insurance Policy - Comprehensive Coverage
- What not to do in case of Car Accident?
- Factors affecting Car Insurance Premium
- When to change your car insurance provider - Guideline?
- Car Insurance Glossary