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Premium Calculations


​Within reasonable limits, some of which are prescribed by law, your auto, home and/or business insurance premium is calculated to reflect the probability that you may suffer a claimable loss.


When you make a claim, you draw funds from the pool of insurance premiums paid by all policyholders. Those who are unlikely to draw from the pool pay less than those who are more likely to draw from it.

Insurers take many factors into consideration when determining the likelihood that you may have a loss. A common misconception is that a policyholder who has never made a claim should pay less, or very little for insurance. While it is true that your claims history is important, generally the location of the risk is also very important.

Shop Around for Best Premium Value

When you buy or renew an insurance policy, private insurance companies compete on the basis of price, coverage and service. They offer consumers and businesses choices when buying auto, home or business insurance. Your insurance representative can provide expert guidance on the best value and coverage for your needs.

 

Auto Insurance Premiums 

Auto Insurance Premiums

Insurers consider the make, model and year of your car, the driving records of the drivers in your household who drive the car and where you live. Learn more about how auto insurance premiums are calculated.

Home Premiums 

Home Insurance Premiums

Insurers analyze a variety of factors to determine how likely it is that you – and others with the same set of circumstances – may make a property insurance claim and what it will cost. Learn how home insurance premiums are calculated. Different insurers may use different factors to develop premiums, shop around for an insurer whose premium credits and discounts best match your particular situation.  

Business Insurance 
 

Business Insurance

This coverage is also called commercial insurance. When calculating a business insurance premium, insurers consider a number of factors such as the type of business you run and the risk management strategies you have in place. Commercial insurance is complex. Make sure you have an insurance representative who understands your business and its insurance requirements.