Marked rates- What are the other companies charging for the same policy?
When these factors are combined a quite complex formula is set and your insurance premium is then computed. The main purpose of this formula is to accurately gauge the correct amount to charge for a policy. In charging the correct premium the insurance company has three primary goals. 1. Bring in enough money to pay the insurance claims. 2. Price a policy so it is appealing to buyers. 3. Make a profit after the claims and company expenses are paid. When you see an increase in your policy premium don’t feel that the insurance company is getting greedy and wanting to stick it to you. Remember that there are many components in insurance premiums and any changes in these components can affect insurance. Realize that this concerns the insurance company because they want to keep their customers, pay their claims, and continue to do business.
