How do premiums change when an insurance policy includes additional or supplementary coverage provisions?

When an insurance policy includes additional or supplementary coverage provisions, it typically leads to changes in the risk that the insurer is covering. These additional coverages often provide extra protection against various risks or extend the limits of coverage offered by the base policy. As a general principle in insurance, when a policy expands to include more comprehensive protections, the level of risk increases for the insurance company.

Consequently, this usually results in an increase in the premium charged for the policy. The additional coverage requires the insurer to absorb more potential liability, which is reflected in the pricing of the premium. While there can be nuances in specific policies or insurers, the overall trend is that enhancing coverage with supplementary provisions will generally lead to an increase in premiums to compensate for the additional risks involved.

Thus, the idea that the premium is not affected does not hold in the context of how insurance works; rather, insurers assess the additional risk and calculate costs accordingly, leading to a higher premium.