Factors like age, claims history and even where a vehicle is parked can affect the premium.

Two South Africans can drive the same car, park in the same suburb and still pay very different monthly insurance premiums.

It feels unfair, especially when your friend, neighbour or colleague casually mentions they are paying a few hundred rand less for cover on the same make and model. But insurers are not only pricing the vehicle. They are pricing the driver, the risk and the likelihood that something expensive will go wrong.

As Ernest North, cofounder of Naked Insurance, puts it: "People often assume car insurance is priced mainly on the car. But in reality, insurers are trying to estimate two things: how likely you are to claim, and how expensive that claim is likely to be. That is why your insurance quote and your neighbour's can differ even if you drive the exact same car."

In other words, your premium is not just about the metal on four wheels. It is also about you, where you drive, where you park, your claims history and the choices you make when structuring your policy.

Your car is only part of the story

Insurers look at a basket of factors when deciding what to charge you. It can include your age,...