Rates to Meet Your Needs


Rates to Meet Your Needs


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Premiums Explained


What is a Premium?

A premium is the amount you pay an insurer for insurance cover.

It reflects what the insurer believes is the likelihood you will make a claim. It also includes an insurer’s business costs, and may also reflect the benefits of any discounts or bonuses the insurer may offer to you.

The amount you have to pay is shown in the policy schedule, which the insurer will send you when the cover has been arranged.


How are Premiums calculated?

Insurers each make their own commercial decisions when deciding how much to charge each person who wants to cover certain risks for something valuable to them.

For example, when you apply to insure your car for a comprehensive or a third party property policy the insurer will decide how much that particular car is worth (market value) and what risks are worth insuring. The insurer may also allow you to nominate the insured value of the vehicle.


Why would my Premium change?

Your premium is likely to change each time you renew your insurance, even if your personal circumstances don’t appear to have changed.

This is because premiums are affected by many factors, including the cost of doing business and changes to the way your risk has been assessed.

Sometimes premium prices will go up across the board, and sometimes your own premium might go up because your level of risk has increased. But if something helps to reduce the risk, this may be taken into account with a lower premium.


What influences my Premium?

When your insurer calculates your premium, it is likely to take a range of factors into account. These factors will change from person to person.

Some key factors influencing your premiums may include:

  • Type of cover selected
  • Any optional benefits you have selected under your policy
  • Discounts you are eligible for
  • Previous claims and incident history
  • Whether you choose to pay your premium annually, monthly or by installments
  • Government taxes and any state or territory duties or levies
  • How much cover you want
  • Your risk assessment by the insurer
  • The level of excess you select


Tips to manage your Premium

     Increase your excessOne way to reduce the amount of the premium you pay is to agree to take on a certain proportion of the risk by increasing your excess. Many insurance policies allow you to specify an excess. In general, a higher excess will mean you pay a lower premiumLower your riskMany insurers will offer you a cheaper premium if you take steps to lower your risk. You may receive a discount on your home and contents policy if you have security devices in place such as window locks and deadlocked doors. In some circumstances, insurers may not offer you a policy unless you have taken reasonable steps to lower your risk. Click here for more information on managing your riskTalk to your brokerProviding additional information to the broker about your specific risk may also allow your premium to be reviewed. You can also ask your broker about how you might be able to lower your premiumAsk if you qualify for any discountsSome insurers may offer discounts such as a no claims or multi-policy discount if you have two or more policies with one companyPay your premium annuallyIf you pay your premium by installments it generally costs you more than if you choose to pay your premium in one annual lump sum payment


Capita Insurance Brokers Inc.

Co-operators General Insurance Building,

Collymore Rock,

St. Michael,


Contact: (246) 434-3245


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