Which factor can affect the premium of a personal auto insurance policy?

The correct answer reflects a comprehensive understanding of the various elements that influence the premium of a personal auto insurance policy. Each of the factors mentioned—age of the driver, make and model of the vehicle, and driving history—plays a significant role in determining how much a policyholder pays for coverage.

The age of the driver is crucial because insurance companies often use statistical data to assess risk. Younger drivers, particularly those under 25, are statistically more likely to be involved in accidents, which results in higher premiums for this demographic. Conversely, older, more experienced drivers generally qualify for lower rates due to their proven driving records.

The make and model of the vehicle also considerably impacts insurance premiums. Luxury vehicles, sports cars, or those known for their high repair costs or theft rates tend to command higher premiums. Conversely, vehicles that are rated for safety and have lower theft rates often result in lower insurance costs.

Additionally, the driving history of the owner is a significant factor. Drivers with a clean record, devoid of accidents and traffic violations, are viewed as lower risk and typically enjoy lower premiums. In contrast, a record that includes accidents, DUI charges, or speeding tickets can lead to increased rates.

Considering all these elements together, it is evident how they collectively