Home Insurance FAQ's What's the difference between stepped and level premiums?
Insurance FAQ's
What's the difference between stepped and level premiums?
Stepped premiums increase each year as you get older; the amount they increase each year will depend on age.
  • From age 20-30 little if any increase each year
  • From age 30-40 average 6% increase each year
  • From age 40-50 average 8% increase each year
  • From age 50-60 average 11% increase each year
  • Above age 60 average 15% increase each year
Please note that this is a guide only in regard to annual increase and actual increases can vary depending upon a range of factors.
This means that as you get older the insurance premiums can get quite high, but there is one way of avoiding this, level premiums. Level premiums are where the premium will remain constant up to age 65 so long as the cover remains constant. Level premiums may be higher now, but over the long term they are significantly cheaper. Where appropriate we will always provide quotes on stepped and level premiums.
 

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