Abstract: The invention discloses a method and a system for determining insurance costs for a driver of a vehicle (100) comprising monitoring the location of the vehicle whilst it is being driven by the driver, monitoring parameters associated with the vehicle whilst it is being driven by the driver, generating a driver profile (400) that indicates the driving style of the driver based upon the location of the vehicle (100) and the parameters associated with the vehicle whilst it is being driven and determining insurance costs or charges using the driver profile. Determining costs associated with how a driver drives enables a driver to pay more fairly determined costs based on how well they drive, as they will not have to pay extra money for drivers who do not drive as well as them.