Premium Loading
Plain English Definition: An extra charge added to an insurance premium due to higher perceived risk.
What Premium Loading really means for someone with an insurance policy
Insurers apply premium loading when they consider policyholders to be at higher risk due to factors like age, medical history, or past claims.
Premium Loading Real World Examples
- Higher premiums for smokers on health insurance.
- Extra charges for homes in flood-prone areas.
- Additional auto insurance fees for drivers with prior accidents.