What does the term “premium per seat” refer to?

The term “premium per seat” specifically refers to the cost of insurance calculated for each passenger seat in a vehicle, particularly in the context of insuring buses or other passenger-carrying vehicles. This pricing structure allows insurers to assess the risk associated with each seat based on factors such as safety, potential liabilities, and the overall usage of the vehicle.

By using this metric, insurers can provide a more tailored insurance quote that reflects both the number of seats and the specific risks associated with those seats, thus directly linking the premium to the capacity of the vehicle. This approach helps in accurately calculating the total insurance premium needed for comprehensive coverage of the bus or passenger vehicle based on its size and passenger capacity.