State Farm Auto Insurance Practice Test

Which of the following would NOT typically lead to a premium increase?

1. At-fault accident

2. Good driving record

3. Financial responsibility filings

4. Traffic violation

The correct answer is: Good driving record

A good driving record is a significant factor that insurance companies take into account when determining premiums. A driver who has consistently demonstrated safe driving habits and has no history of accidents or violations is typically considered a lower risk. Insurers reward this behavior with lower premiums because these individuals are less likely to file claims. On the other hand, at-fault accidents and traffic violations indicate to insurers that a driver poses a higher risk, which often results in increased premiums. Financial responsibility filings, such as SR-22 forms, are required after certain driving infractions and can also lead to higher rates as they signify that a driver has been deemed high risk in the past. Thus, holding a good driving record would generally not lead to a premium increase; instead, it would most often help maintain or reduce premiums.