Tag: insurance premiums

  • HOW INSURANCE COMPANIES CALCULATE YOUR PREMIUMS

    HOW INSURANCE COMPANIES CALCULATE YOUR PREMIUMS

     

    Have you ever wondered why your insurance premium is a certain amount? Whether it’s for your car, pet, home, or business, insurance companies use a variety of factors to determine how much you pay.

    RELATED: WHY DO INSURANCE PREMIUMS INCREASE?

     

    The Key Factors That Influence Your Insurance Premium

    We don’t just pull your insurance premiums out of a hat. It’s far more personal than that. Insurance premiums are carefully calculated based on risk, statistics, and your individual details. Here are some of the main factors at play:

    • Your Risk Profile: Insurers assess how likely you are to claim based on statistics. For example, younger drivers might pay more for car insurance. Pet insurance may be pricier for certain breeds, and business insurance for an online store may be more expensive due to transit or cyber risks.
    • The Value of What You’re Insuring: A brand-new luxury car will cost more to insure than an older hatchback. The same goes for a larger home versus a modest one and selecting higher or lower limits on your pet insurance.
    • The Use of What You’re Insuring: A car or building used for business activities is exposed to more risk and, therefore, higher premiums.
    • Location, Location, Location: Where you live or operate your business affects your premium. High-crime areas or regions prone to extreme weather may result in higher premiums.
    • Claims History: A clean claims history can mean lower premiums, while frequent claims may increase premiums.
    • Excesses: The general insurance principle is that the higher your excess, the lower your premium. So, if you have chosen a lower excess to avoid paying more when you claim, you may pay a higher premium monthly.
    • Cover Level: Comprehensive cover, such as our Ultimate Pet Plan, will cost more than our Accidental Plan. The same applies to dotsure.co.za car insurance, which offers tailored cover with Name Your Price™. This allows you to save by removing cover options you don’t need.

    Psst… Find out exactly how your car insurance premiums are calculated here: HOW MUCH WILL MY CAR INSURANCE COST?

     

    Premium Insurance, Premium Peace of Mind

    At dotsure.co.za, we offer flexible cover, ensuring you get the best value for your money. Do you want a personalised quote? Get one today in minutes.

    RELATED: HOW INSURANCE CLAIMS WORK

  • WHY DO INSURANCE PREMIUMS INCREASE?

    WHY DO INSURANCE PREMIUMS INCREASE?

     

    Nobody enjoys a price increase. Petrol, medical aid, gym memberships… They always seem to be going up. And insurance premiums are no different. But before your inner Karen comes out and asks to speak to the manager, let’s unpack the reasons behind premium increases and what you can do about them.

    RELATED: HOW INSURANCE COMPANIES CALCULATE YOUR PREMIUMS

     

    Common Reasons for Insurance Premium Increases

    Inflation & Rising Costs

    Like groceries and petrol, repairs, vet treatments, and labour costs increase over time. If mechanics, vets, or spare parts become more expensive, insurers adjust premiums to keep up.

    Increased Claims in Your Area

    If your neighbourhood has more thefts or accidents, insurers may see it as a higher risk, influencing your premiums.

    Changes in Your Circumstances

    Moving to a new area, upgrading to a more expensive car, or adding a new pet to your policy can impact on your premium.

    Market Trends & Regulations

    Economic shifts, supply chain issues, and new regulations can also affect how premiums are structured.

     

    How to Keep Your Premiums Manageable

    Keep Your Claims History Clean

    The fewer claims you make, the less risky you appear to insurers — helping to keep your premiums steady.

    Choose the Right Plan

    Pick an insurance plan that matches your needs. Being underinsured can leave you exposed, but overinsuring can mean paying for cover you don’t need.

    Increase Your Excess

    A higher excess means lower monthly premiums, but only if you can afford the excess in the event of a claim.

    RELATED: CLAIMS 101: UNDERSTANDING POLICY WORDING

     

    Save with Insurance

    The bottom line? Insurance premiums aren’t random price hikes. They reflect real-world costs and risks. But by making smart choices, such as choosing the right insurance company (it’s us, dotsure.co.za), you can help keep your premiums in check while staying covered when you need it most.

    Are you looking for affordable car, pet, home, or business insurance? Visit dotsure.co.za today!