State Farm Auto Insurance Practice Test

What is a common outcome of receiving a discount on auto insurance?

1. An increase in coverage options

2. A reduction in the insurance premium

3. An extension of the policy period

4. A decrease in the deductible

The correct answer is: A reduction in the insurance premium

Receiving a discount on auto insurance typically results in a reduction in the insurance premium. Discounts are commonly offered for various reasons, such as maintaining a clean driving record, enrolling in a multi-policy plan, completing a defensive driving course, or having safety features in your vehicle. By qualifying for these discounts, policyholders can lower the overall cost of their insurance coverage, making it more affordable while still maintaining the necessary protection. The other options, while they may be related to different aspects of an insurance policy or affect costs and coverage in other ways, do not directly relate to the specific outcome of receiving a discount. Thus, the primary and most immediate consequence of gaining a discount is indeed a decrease in the premium amount.