The premium can vary depending on many factors that are believed to affect the expected cost of future claims.
Many factors are deemed relevant to such classification in a particular actuarial class or risk level, such as age, sex, marital status, location of residence and driving record.
The current system of insurance creates groupings of vehicles and drivers (actuarial classes) based on the following types of classifications.
The classifications, such as age, are further broken into actuarial classes, such as 21- to 24-year-olds, to develop a unique vehicle insurance cost based on the specific combination of attributes for a particular risk.
More recently, electronic systems have been introduced whereby the actual driving performance of a given driver is monitored and communicated directly to the insurance company.