What primarily determines the premium for motor insurance?

The premium for motor insurance is primarily determined by the driving history of the policyholder. Insurers assess a driver's past behavior behind the wheel, which includes their record of accidents, claims, traffic violations, and overall experience as a driver. A clean driving history with no accidents or claims suggests a lower risk profile, often resulting in lower premiums. Conversely, a history marked by multiple claims or violations indicates a higher risk, generally leading to higher premiums.

While factors such as the make and model of the vehicle can influence premium pricing—as some vehicles are more expensive to repair or are statistically involved in more accidents—they do not hold as much weight as the personal driving history of the policyholder. Similarly, local traffic conditions can affect premiums but are generally considered secondary to individual driving behavior when it comes to determining risk levels for pricing purposes. The color of the vehicle does not play any role in assessing risk or pricing insurance.