How are Insurance Premiums Decided?
Ever wonder why one person has better insurance premiums over another? Insurance premiums are decided by an insurance company based on your risk level. And Insurance premiums for services can differ from company to company, which is why it's wise to shop around for the best rates. Depending on the type of insurance you are seeking, there are different factors that the insurance companies will look for in relation to your life history, age, and health. To better understand how it works, here’s a look at how insurance premiums are decided and some of the most common factors that are used to determine your rate.