insurance pricing

Insurance pricing, or premiums, are set based on the likelihood and potential cost of a claim. Insurers evaluate risk factors like age, health, or property location to estimate how often and how much they'll need to pay out. If you’re higher risk, your premium will be higher to cover the greater chance or cost of a claim. Conversely, lower risk often means lower premiums. Other factors like policy limits, deductibles, and coverage options also influence the price. Overall, insurance pricing balances the insurer’s expected costs with the need to remain competitive and financially sustainable.