🔹 Why Are Some Cheaper (or More Expensive) Than Others?
Have you ever wondered why your friend pays less for a policy that seems identical to yours?
Or why your car insurance is more expensive than someone else’s with the same model?
The answer lies in the insurance premium — and the many factors that influence it.
✅ What Is an Insurance Premium?
An insurance premium is the amount you pay to an insurance company in exchange for coverage under a policy. This can be paid monthly, annually, or as a lump sum depending on the type of insurance.
🔍 What Affects the Cost of Your Premium?
1. Age of the Insured
- The younger you are, the lower the risk — and the cheaper the premium.
- Older age = higher risk = higher premium, especially for life, health, and accident insurance.
2. Sum Insured
- Higher coverage means higher premiums.
- For example: Life insurance with a THB 1 million sum insured costs more than one with THB 300,000.
3. Type of Coverage
- Basic or term coverage costs less than comprehensive plans with added benefits.
- For auto insurance, first-class (comprehensive) coverage is more expensive than third-party only.
4. Health Conditions / Claim History
- Pre-existing conditions or frequent past claims will typically raise your premium.
- This is especially relevant for health and critical illness insurance.
5. Usage or Risk Profile
- For vehicles: Heavy use or commercial usage = higher risk = higher premium.
- For property: Homes in flood-prone or earthquake-risk zones will also cost more to insure.
💡 Tips to Choose the Most Cost-Effective Premium
1. Choose Coverage That Matches Your Needs
Don’t over-insure. For example, if you rarely visit clinics, you may only need inpatient (IPD) coverage in a health plan.
2. Compare Across Companies
Use brokers or comparison websites — the same coverage can vary in price by thousands.
3. Buy Early
The earlier you purchase (especially life or health insurance), the cheaper your premiums will be.
✨ Summary
There’s no “one-size-fits-all” premium in insurance. The cost is shaped by personal factors like your age, health, coverage needs, and more. Understanding how it works helps you make smart decisions — saving money while ensuring you’re fully protected.