By Catherine Powell
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| Image courtesy Pixabay |
Nobody likes to pay more for insurance. That’s a given. But what most policyholders don’t understand is how their premiums are determined, let alone what they can do to reduce them. Insurance companies spend a lot of time and money determining what to charge for their products. There are dozens of indices that are factored into the equation by underwriters. But when you get right down to it, all insurers base their prices on one factor more than any other: Risk. Reducing risk is what makes or breaks all insurance companies. It’s also the number one cause of price hikes to policyholders. While a policyholder can’t reduce the risk of a natural disaster occurring in their town, there are a number of things everybody can do to improve their risk profile to reduce the cost of insurance.
