What are Insurance premiums? Explanation

What are Insurance premiums?

The insurance premiums are the amount specified in your contract that you pay for your desired insurance cover. The insurance premiums are individual and sometimes change. The premium for each of your insurance policies is made up of many different factors. For example, the general price trend, which affects everyone. And also your personal situation, which is only reflected in your premium.

We will explain to you how the insurance premium is made up, why it changes and how premium increases can occur, using two different types of insurance. Likewise, what you can do to save on premiums. Very easily.

The small scratch when parking. The big collision with a deer. Without insurance coverage for you and your car, things get expensive. You get the obligatory one-car liability insurance and the right one Partial or fully comprehensive insurance with us.

Small city runabouts. Big family carriages. Sleek convertibles. And sturdy pick-ups. Car insurance premiums are as varied as the types of cars. Your personal bonus is influenced by the following factors:

  • The scope of your insurance: which car do you drive? Which cover do you choose?
  • The amount of your deductible: the higher the deductible, the lower the premium.
  • Where you live and how you park your car: Is there an increased risk in your region, for example, due to the density of traffic? Do you have a garage or an outside parking space?
  • Who drives the car and how much: young or old? Experienced or inexperienced? How many kilometers do you drive by car?

In addition, general factors such as general price developments also play a role.

Calculate your individual car insurance premium online now.

You have a new car. Or include additional coverage. Often these are the triggers for a premium increase or change. But there are other reasons:

There are many and expensive claims

Hailstones the size of a golf ball on the roof of the car. Knee-deep water in garages. Severe storms are increasingly causing major damage throughout Switzerland. With an increasing number of those affected. Traffic is also getting denser and the number of accidents is increasing. At the same time, repairs and spare parts are becoming more and more expensive – for example, when the garage operator has to replace the fender and all of the electronics and the sensors behind it. All of this flows into our insurance premium, with which we pay for the damage suffered by our customers. And that can mean that we have to adjust the premiums accordingly.

Discounts are no longer applicable

You received a temporary discount and benefited from it for some time.

A bonus or malus is noticeable

Have you been driving accident-free for years? Congratulation! Then you will receive a bonus and fall into the next lower premium level for the new contract year. As soon as you have reached the cheapest premium level, your premium remains constant. Did you have a claim? Then you will be placed in a more expensive premium tier. To protect you from this, we offer you bonus protection. With this additional coverage, your premium remains stable even if there is one claim per year.

You personally suffer a lot of damage

A stone in the windshield. A marten bite in the engine compartment. Something like that happens before. But if this happens more often and if the number of claims increases above average, we have to increase the insurance premium accordingly. So that we can give everyone a fair premium.

Still do not understand your premium adjustment? Then we can certainly help.

Your insurance premium takes into account general developments and your personal situation. But you can still save costs:

  • Increase your deductible.
  • Avoid coverage that is no longer required: With an older car, for example, you can switch from fully comprehensive to partially comprehensive insurance. We have a few here typical double insurances put together for you.
  • Switch to annual payment and save on surcharges.
  • Become a member of two or more policies Allianz Plus and benefit from price advantages.
Everyone should have it: our combined one Household insurance. This consists of personal liability insurance, which takes over if you cause damage to someone, and household contents insurance protects your own belongings.

A two-room attic apartment, a house on the outskirts of a chalet in the mountains. Every household is different. That is why the premiums for household insurance are also very different. Your very personal situation, therefore, plays an important role. For example:

  • The sum of your inventory: What is the value of your household items (sum insured)? And what additional covers have you taken out?
  • The amount of your deductible: the higher the deductible, the lower the premium.
  • Your living situation: are you alone or as a couple? Tenant or owner?

The premium is also influenced by general factors such as general price developments.

Check your household items every two years to see whether the insured amounts and covers are still correct. It is worth it… Because the sum is too low and the cover is insufficient, there is a risk of frustration in the event of a claim. If it is too high, you can save money by adjusting it.
The most common reasons for premium changes and increases are adjustments that you make to your insurance. For example, if you change the deductible or move. Unfortunately, there are also triggers that you can hardly influence.

There are generally many claims

Due to climate change, storms and hail are increasingly common in Switzerland. The damage is increasing and the number of those affected is increasing. We have to take this into account when calculating the insurance premium.

In addition, purchases, any replacement services, and repairs are becoming more and more expensive – for example when not only furniture but all electronics have to be replaced during floods. For this reason, we regularly check the premiums and adjust them if necessary. Ultimately, we must and want to be able to insure and finance the damage suffered by all of our customers.

The prices in Switzerland are changing

A valuable carpet in the living room. A real collector’s item in a guitar case. Your facility can add value without you making an acquisition. Your facility can now have a value or an insured sum of around CHF 80,000. And in a year the value may rise to CHF 82,000. Without your knowledge or assistance, you are suddenly underinsured. Therefore, the sum insured is adjusted annually to the national consumer price index (LIK). This means that your premium can increase slightly from year to year. Or sink.

Discounts are no longer applicable

With us, you benefit from a youth discount up to your 30th birthday. If this is no longer applicable, your premium will increase. Just like when you have benefited from a temporary sales discount.

You personally suffer a lot of damage

An expensive vase falls to the floor. The move has left its mark on the parquet of your old apartment. The damage happened quickly. However, if your claims accumulate above average, we will have to adjust your insurance premium accordingly. This is the only way we can offer all insured parties a fair premium.

Still can’t explain your premium adjustment? We’re here to help.

To influence your insurance premium and save costs, you can do the following:

  • Increase your deductible.
  • Forego cover that is no longer required and accept the residual risk. Here you identify a few typical double insurances.
  • Check your sum insured every two years.
  • Switch to annual payment and avoid surcharges.
  • Become a member of two or more policies Allianz Plus and benefit from price advantages.