Which factors affect auto insurance premiums?

The correct choice highlights the most significant factors that insurance companies consider when determining auto insurance premiums. Driving record is crucial, as a clean record typically results in lower premiums, while violations or accidents can significantly raise rates. Mileage affects premiums because more time on the road increases the likelihood of accidents, leading insurers to view higher mileage as a risk factor. The type of vehicle plays an important role as well, since some cars are more expensive to repair or have higher theft rates, influencing the overall cost of coverage. Lastly, location is key; certain areas may have higher crime rates or more traffic, leading to increased risks and premiums in those regions.

In contrast, other options include factors that do not directly or uniformly impact premiums across insurers. For instance, the age of the vehicle can affect rates, but it is often more nuanced and heavily dependent on other factors like safety ratings and value. Gender of the driver is less commonly used in premium calculations in many states due to regulatory changes aimed at promoting fairness. The type of fuel used is generally not a direct factor influencing insurance costs. Finally, while time of year, a driver’s credit score, and previous claims can influence rates, these factors are less universally applicable than those listed in the correct option. For example,