Drivers pay their car insurance premiums through a monthly or annual payment. The frequency of premium payments is dependent on the driver’s risk factors, driving record, and other personal information. Drivers who drive less than 10,000 miles per year may be able to get away with paying a bi-annual premium. Drivers who drive more than 10,000 miles per year will have to pay an annual premium. The insurance company uses these risk factors to estimate the risk of a driver’s claim and then sets the premium accordingly. If there is no data available for the driver, they use their driving records as a basis for setting the premium.