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If your insurer asks for a higher premium because you are Rated, is it worth applying to another insurance company?
We do not think so. Why? Read on.
Hot Topics
- Will your premiums increase?
- It depends upon whether you have a “Reviewable” or “Guaranteed” policy.
- Why is insurance more expensive for smokers?
- On average, the premium for a smoker is around 65% higher than a non-smoker. The reason is quite simple – non-smokers are generally healthier and live longer.
- If my premium is “Rated”, what does that mean?
- If your premium is “Rated” it means that the insurance company will only agree to insure you if you pay a higher premium than the one they originally quoted. This happens because, following receipt of your Application and any follow-up information they required, the insurance company believes you to represent an above average risk. (In extreme situations they will simply decline to insure you.)
- If your insurer asks for a higher premium because you are Rated, is it worth applying to another insurance company?
- We do not think so. Why? Read on.
- Information about The Financial Services Authority
- Who is the Financial Services Authority? (FSA)
1. The underwriting standards do not vary much between insurance companies. There are industry standards which they all adhere to. Therefore, if one insurance company Rates you, so will all the others.
2. If one insurer Rates you then the others will too. If you apply to the company which provided the second cheapest quotation, then you are certain to be rated again and the rating will be even more expensive than the first!
3. One of the most important factors in your premium is your age and the insurance companies tend to work out your age in quarter years – each quarter being more expensive than the last. If you have had to take a medical then moving to another company will certainly mean yet another medical. This takes a lot of time and your Application may well move your age into the next older quarter – and this means an automatic increase in your premium even before you’ve been Rated!
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- Why are the insurance prices on the Internet so low?
- Is the price you’re quoted, the price you pay?
- Will your premiums increase?
- If my premium is “Rated”, what does that mean?
- Is it better to have Guaranteed or Reviewable premiums?
- If you’re asked to supply more information or go for a medical, will the premium increase?
- Will your medical history affect your premium?
- Are there any extras to pay?
- Will you need a medical?
- Is a medical absolutely necessary?
- Can you get a quotation now online?
- What causes delay and can delays be reduced?
- Do I have to pay the Life Insurance Broker a fee?
- Go to menu of Frequently asked Questions about Mortgage Life Insurance
- Go to menu of Frequently asked Questions about Life Insurance
- Go to menu of Frequently asked Questions about Critical Illness Insurance
- Go to menu of Frequently asked General Questions