The price you pay for your car insurance is known as the ‘premium’.
Premiums are quoted annually (although you can usually pay monthly if you want).
When calculating your car insurance premium, insurance providers will check how much of a risk you are when driving. To do this, an insurer will want to know things such as:
· how likely are you to cause or be involved in an accident
· how much your car would cost to repair or replace
· are you a good driver
The insurance provider will also use statistics and claims data to calculate your premium.
When you apply for car insurance, the provider will ask you a variety of questions. These include:
· your age and relationship status
· your address
· how many miles you expect to drive each year
· your driving experience
· the make and model of your car, engine size, and any modifications
· where you keep your car overnight (i.e. garage or on the road)
· previous car insurance claims
· any driving convictions
· what you will use your car for (i.e. social and domestic use, or commuting to work too)
· who else will drive your car
· your occupation