How is car insurance premium calculated?
1 Answers
The cost of vehicle insurance is related to the method of underwriting, the chosen insurance company, the types of coverage selected, and the value of the vehicle itself. Relevant details are as follows: 1. Different insurance companies and various coverage options each have their own advantages, so you can choose based on your needs. The higher the insured amount and the value of the vehicle itself, the higher the required premium will be. 2. In the process of calculating the premium, one part is a fixed premium, while another part is calculated based on the insured amount and the corresponding rate. 3. Additionally, when renewing vehicle insurance, the cost calculation is linked to the number of previous claims made for the vehicle. If the vehicle has not had any claims, you can enjoy a discount when renewing the insurance.