Car insurance is a financial cover against the risk of accident; these accidents come in three main forms which are fire theft and accident. Should any of these three things occur your insurance company will pay you out the amount that it cost to fix the damage, and in exchange for this benefit you pay the insurance company premiums. A premium is either a once a year lump sum of money which you pay to the insurance company in exchange for the insurance cover that you receive, the people who receive inexpensive car insurance premiums are generally those that are considered to be the lowest risk by the insurance company. In terms of age these are usually old people so if you want cheap insurance you may want to consider being old.