Basic Premium

The Basic Premium is where the price starts. If it is an auto policy then you will have a certain rate for levels of Public Liability and Property Damage (PLPD) and physical damage. The available discounts to reduce the cost or surcharges that add cost are applied as per the driving record.

Basic premium for other items such as commercial insurance will be determined by factors such as building construction and location. Underwriters for the insurance companies will have some discretion depending on the particulars of the individual business and history of the owners.

Talk to your agent or broker. Be sure that you have given full information about your situation and have considered the best coverage available. Take control of your insurance.