Claim Free Group

When determining the amount insureds will pay for premiums, an insurance company will assess the insured’s risk. An insured’s premium is based on the cumulative risks associated with them, such as their age, gender, value of the asset and so on. The claims record of the insured also contributes to the risk the insurance company is taking on themselves.

All these risk factors determine which group of risk the insured falls into. Obviously insureds that claim more are more of a risk to an insurance company than those insureds who don’t submit claims as frequently, thus they pay more on premiums. Insureds who, after three years with an insurer, have no record of claiming from their insurer fall into the claim-free category.

Qualifying to be a part of this category doesn’t only yield a bonus from the insurance company, but also a cheaper premium. (The insured qualifies for a discount.) Insureds must check their insurance policies to determine whether or not their insurer offers such a discount.