How your car insurance
premiums are calculated
CAR INSURANCE USAGE RISKS - USE OF THE CAR
Use to which the insured car is put.
There are no 'use' or usage clauses which are universally
accepted by car insurers when defining car insurance usage
risk, however some car insurers divide their risks into four
classes and among those which use only three classes there
are some differences in the clauses used.
In order to understand the complicated
subject of 'use' clauses it is necessary first to consider
why 'use' is regarded as a car insurance rating factor.
MILEAGE
Other things being equal it is reasonable to assume that a
car which is driven for 16000 miles per year is more of a
risk than one driven for only 5000 miles, simply because the
car is on the road much more and thus 'exposes' the Car Insurance
company to potential liability to a far greater extent.
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