Last year, Mike’s motorbike was insured with the LUCKY insurance company. The insurance policy covered damage to the motorbike from accidents and theft of the bike. Mike plans to renew his insurance with the same company this year, but some factors in Mike’s life have changed since last year. Mike was responsible for two road accidents last year. How can this factor affect the cost of Mike’s motorbike insurance this year?

• The cost increases.
• It has no effect on the cost.
• The cost reduces.
• The cost reduces and then it increases.