Which factor typically results in higher motor insurance premiums?

Higher monetary value of the vehicle often leads to increased motor insurance premiums because the cost to repair or replace a more expensive vehicle is significant. Insurers assess the potential risk exposure, taking into account the market value of the vehicle; higher value typically means a higher payout in the event of a claim. Additionally, vehicles with higher values may carry additional, comprehensive features that may require specialized parts or expertise for repair, further adding to the overall risk for the insurer.

In contrast, increased safety features in vehicles tend to lower premiums, as they reduce the likelihood of accidents or severe damage. Lower annual mileage also generally results in lower premiums, as less driving reduces the likelihood of being involved in an accident. Finally, the driving experience of the policyholder plays a vital role, with more experienced drivers often qualifying for lower premiums due to a proven track record of safer driving.