The law says that all drivers and vehicles must have liability insurance. This means that if you cause a serious accident and it turns out that it was your fault, your insurance company will pay out any claims that are made against you. Comprehensive insurance is an optional way to get more protection for your own car.
The price you pay for this insurance is based on a number of risk factors that are taken into account by the insurance company. The way it works is that your premium will be higher if they think you're more likely to crash and if they think the crash will cost them more.
Assessment
The value of the car you drive, how safe it is, the coverage you want, whether there are deductibles or limits, etc., are all things that can affect your premium. How much you'll drive the car, your driving record, how long you've had your licence, your age, and if you're young, your sex.
Then, the premium is worked out. Most of the time, everyone pays the same flat rate per car per year, no matter what else is going on. Then, the other things will change this rate, usually for the better. So, your rate will go up by a certain amount if your car is very fast or dangerous. Your rate goes up if it is very old. Your rate will go up if you've been in one or more accidents in the past. Your rate will go up if you are young and a man. Your rate will go up more the more of these things you meet.
Discounts
As a way to boost sales, many car insurance companies offer a "low estimated future mileage" discount to customers who think their car will get less than a certain amount of miles during the next premium period. There is no checking, and there is no extra charge if the car is then driven more than the amount stated. Customers tend to think, wrongly, that "miles" are just one of many factors that are used to raise or lower prices from the territorial base rate because of how they are grouped. In fact, odometer miles, which insurers don't use, are not a factor but a metric. They are the only way to measure how much insurance coverage each car needs when it's on the road.
The best way to save money on car insurance is to shop around, keep a clean driving record, drive safely, and choose reliable cars that aren't known for their power and speed.
