Frequently Asked Insurance Questions
Why do I need insurance?
Many individuals don't think they need insurance, but insurance is very desirable - mandatory in some cases. There is a reason that the government feels it is necessary to make insurance mandatory: it provides financial backing for social needs. Insurance makes life-changing events financially safe: paying for medical treatment, replacing the income of a deceased family member, limiting adverse financial damage from accidents and lawsuits, and replacing destroyed homes. Essentially what insurers offer is financial security and peace of mind. Making small payments to insurance companies ensures that in case of an emergency, you will be covered financially.
What is my insurance premium based on?
Insurance premiums are calculated based on the risk that the insurer is assuming in order to cover the insured. Anything that can raise or lower your risk is used in this calculation, and how certain attributes affect the premium amounts are based on analysis of data pertaining to your characteristics. Some are obvious, such as a more expensive home posing a larger risk for an insurer, while others are less obvious such as the fact that engineers are less risky drivers to insure than most other occupations.
