Many insurers nowadays advertise low rates. An offer is often made to take over existing insurance policies. However, you should not think too lightly about transferring your insurance. There is often a fine associated with transferring insurance and what is perhaps even more important: The conditions of the old and the new insurance can differ considerably. What should you pay attention to when you want to refinance at a profit? Everyone naturally wants to be well insured and preferably as affordable as possible. However, that does not mean that you should immediately change tack when a new insurer mentions a lower premium. It is useful to inform yourself well about different insurers, their insurance package, their specific conditions, and the associated premium. Make sure you know which insurance policies you need and what exactly they should cover.
How is the insurance premium actually determined?
What insurance costs you depends on a number of different things. The amount of premium you pay is primarily related to the risk that the insurer runs of having to pay out. When you are older, you are more likely to get sick than someone who is young. When you work with hazardous substances, you are more likely to contract a lung disease than someone who works in a supermarket. If your house is made of wood, there is a greater chance of it burning down than if it were made entirely of stone. To determine the premium, an insurer will use tables for each insurance policy to determine the risk as accurately as possible for different types of policyholders. Based on a combination of general risk and your own personal risk, a price tag, the premium, is attached to the insurance on an annual basis. If you purchase multiple insurance policies, the price may be lower than if you purchase only one insurance policy from a specific insurer. The premium will also sometimes depend on whether you pay your deductible or not. You can often choose to take out insurance with, without or with a partial deductible for damage. Logically, the premium for these options will vary considerably.
What about the terms and conditions of insurance?
For each insurance policy, an insurer will determine what it will and will not reimburse if damage occurs. If you set your house on fire yourself, an insurer will be less likely to open your wallet. When a natural disaster occurs that affects the whole of the Netherlands, an insurer will certainly not be able and willing to cover all expenses on its total insurance package. Conditions can also be made personal. A good example of this is health insurance: Depending on the package you choose, you are entitled to a standard reimbursement for dental costs or to excellent coverage of your teeth, where, for example, crowns and bridges are fully covered, instead of only up to a certain maximum. compensate. An insurance policy may have a low premium but also provide little compensation in the event of damage. Consider, for example, travel insurance. Continuous travel insurance on an annual basis is often cheaper than travel insurance that is taken out on one holiday. How is that possible? If you lose your luggage, the continuous insurance may reimburse you for a maximum of EUR 500, while the one-off insurance may reimburse your entire luggage with a total value of EUR 4,500.
What should you pay attention to when you are offered to transfer insurance?
To make a good choice between different insurers and specific insurance policies, it is good to take a number of things into account. Use this questionnaire as a checklist when you receive a proposal from an insurer. Or better yet: Do your own research and make sure you find the cheapest and best insurance available. Request quotes from multiple parties. It takes some time, but then you actually know everything you need to know to be assured of a safe starting position quietly and cost-effectively.
- What is the premium for individual insurance and how does it compare to that of other insurers?
- Is there a package price or do you not receive a discount when purchasing multiple insurance policies?
- How is your premium structured? Are your gender, age, living conditions or other characteristics taken into account?
- For how long is this specific premium valid and when can it be increased again?
- What are the specific conditions of the insurance: What is reimbursed and what is not?
- Are these fixed or can they be adjusted by the insurer without consultation?
- Are there conditions that could prevent a switch?
- Are there options or modules: Can you choose different options for an additional fee?
- Will there be a penalty if you leave your current insurer?
- Does whether a fine is charged depend on when in the year you decide to switch?
- Who pays the fine, if applicable?
- Does the insurer in question have a good reputation in the market; is he reliable?
- Is there a deductible? How high is that and is it optional or not?