What factor can lead to lower auto insurance premiums?

Completing a defensive driving course can lead to lower auto insurance premiums primarily because it demonstrates to the insurance provider that the driver is committed to safe driving practices. Insurance companies often view individuals who complete such courses as lower risk, as they have gained additional skills and knowledge to help avoid accidents. This perceived reduction in risk means insurance providers may offer discounts on premiums as a reward for proactive safety measures, thereby encouraging more drivers to take these courses.

In contrast, having multiple vehicles typically increases risk exposure, which could lead to higher premiums rather than lower ones. Living in a big city often correlates with higher rates of accidents and vehicle theft, contributing to increased costs for auto insurance. Filing frequent claims can indicate a higher likelihood of future claims, leading insurers to raise premiums to mitigate their financial risk.