Buying insurance - How your premium is calculated

The higher the risk you pose, the more you pay because the greater the chance that the insurance company will have to pay out when you make a claim. This is what's taken into account:

Where you live: some areas have higher theft rates than others.
Age: there's no substitute for experience to reduce the likelihood of an accident.
Driving history: if you've spent the last decade crashing into things there's a good chance you'll continue to do so.
Occupation: lawyers and doctors are a safe bet; journalists and film stars aren't. How you earn a living radically affects the risk you pose, so if in doubt just become an accountant.
Licence cleanliness: got 11 points on your licence? If so, you clearly have problems obeying laws; insurance companies don't like law breakers.
Annual mileage: the more you drive, the greater the risk of you having an accident. Keep your annual mileage down and you can reduce your premium accordingly.
Security: if no alarm or immobiliser is fitted, there's a good chance your car will walk. Fit some sort of security system, your car will stay where you leave it and there'll be no claim made. Everyone's a winner.
Where the car is kept: insurance companies like garages or at least off-street parking. Leave your car in the road and you'll pay more.
Who drives it: allow the world and his wife to drive your car and you'll get charged accordingly. Restrict cover only to those who really need it.
Value of the car: the higher the value of the car, the more it'll cost to insure. It really is that simple.
Type of cover: comprehensive cover costs more than third party, fire and theft. If your car is almost worthless, don't insure it comprehensively - but shop around and you might be able to insure it comprehensively for the same money that someone else is charging for just basic cover.
Usage: insurance companies don't like vehicles being used for business use. So restrict its use to social, domestic and pleasure for a lower premium.
Left or right-hand drive: insurance companies don't like British drivers running left-hand drive cars; they like the steering wheel on the right.