What is generally considered a factor that can increase an auto insurance premium?

A higher driving record risk is a significant factor that can increase an auto insurance premium because insurers assess the risk of a driver based on their history of accidents, traffic violations, and claims. A driver with a record of frequent accidents or violations is deemed to pose a higher risk to the insurer. Consequently, the insurance company may raise the premium to reflect this increased risk, as they anticipate a greater likelihood of having to pay out claims associated with that driver.

In contrast, factors such as a lower value vehicle or living in a rural area typically do not result in higher premiums. A lower value vehicle would generally lead to lower premiums since the potential payout for a total loss claim would be less. Similarly, those residing in rural areas may find their insurance premiums lower due to lower population density and reduced traffic congestion, which often translates to fewer accidents. A lengthy driving history can also contribute positively, demonstrating experience and potentially leading to lower premiums over time depending on the driver's record.