First, there's the area you live in. An area noted for car crime and damage is going to attract higher premiums. It doesn't matter how good a driver you are or whether you've made no claims in twenty years. If you move to a rougher neighbourhood, your premiums will go up. There are actually gangs who systematically stage fake accidents to get the insurance money. Then you have areas where cars parked in the streets are like dangling candy in from of starved teenagers ...

Second, there's the general insurance market. Has there been a string of natural or unnatural disasters where people have had to make claims, even in foreign countries? Has the wider financial economy taken a big 'hit', recently? All finance companies (and an insurer is a finance company. It may even be owned by one) are linked up. They're trading paper with each other. If one takes a big hit, the others linked to it may feel the pain. So, the insurers may have to pass the cost onto you, the careful driver.

Third: Greed! you get a good deal when you join, to lure you in, then the premiums go up when you're esconced as a customer!

There are three levels of of car insurance cover:

1. Third Party

The minimum legal level. The first two 'parties' are the driver and the insurance company i.e. parties to the deal, the entities involved. The third part is the guy you bang into.

This type of insurance covers your liabilities with respect to:
Injuries to others (persons inside and outside your vehicle).
Other peoples' property (the third party's car, but not your own vehicle, the wall you crash into, etc).

2. Third Party, Fire and Theft.

This is the same as 1. above but also covers you for theft and damage to your vehicle caused by someone trying to steal it and also fire damage.

3. Comprehensive.

As the name suggests, this covers you for a lot more. It covers all that Third Party Fire And Theft covers you for and also for:

• Accidental damage to your vehicle;
• Medical expenses, up to a pre-set limit;
• Damage to or loss of personal property within the vehicle, to a pre-set limit;
• Malicious damage to your car;
• Personal accident;
• New for old replacement of the car in the first year;
• Glass replacement (windows, sunroof).