What happens if an insured opts for additional coverage beyond the basic limits in their policy?

When an insured opts for additional coverage beyond the basic limits in their policy, it typically leads to an increase in the premium. Insurance companies determine premiums based on the level of risk they are covering, and additional coverage enhances that risk. Therefore, when coverage limits are raised, insurers adjust the premiums to reflect the higher potential liability they have under the policy.

The other options do not align with standard insurance practices. For instance, filing a claim is contingent on an event occurring that necessitates coverage; opting for additional coverage does not automatically require a claim to be filed. Furthermore, additional coverage does not invalidate the policy; it simply expands the protections offered. Lastly, an insured would not receive a refund for purchasing additional coverage, as it is an added service that incurs extra cost, not a reduction in fees or premium.