All the benefits of this motor vehicle insurance you can feel as long as you want to pay premiums to the insurance, especially for cheapest motorcycle insurance companies. The amount of premium you pay is based on several considerations, namely:
- Vehicle type and price
The first thing to consider before determining the cost of vehicle insurance premiums is the type of your vehicle. Types of vehicles are generally divided into 3 types, namely non-bus and non-truck vehicles, bus and truck vehicles, and two-wheeled vehicles. Distribution by type of vehicle is applicable to insurance products Total Loss Only and all risk.
After finishing categorizing the type of vehicle, the vehicle price is also a consideration before finally the cost of your insurance premium is determined. Vehicle prices are also categorized into several categories. The more expensive the price of your vehicle, the more expensive the premium you have to pay.
- Coverage Area
After considering the type and price of the vehicle, the coverage area is the next consideration. The coverage area is divided into 3 sections and region 3 covers areas not covered in territories 1 and 2. This consideration also applies to Total Loss Only and All Risk products.
- Vehicle Age
The last thing to be considered for determining the premium price is the age of your vehicle when it goes into insurance. The facilities and the rules of insurance also vary depending on each insurance company. The older the age of your vehicle, usually the premium price will be more expensive. As the rule stipulated by the Financial Services Authority that there is an additional 5% per year for each vehicle that is older than 5 years and only applies to the type of All Risk insurance.