Which of the following factors can affect insurance premiums?

The chosen answer is spot on because it highlights the various risk factors that insurance companies commonly assess when determining premiums. Each of these factors—driving history, credit score, location, and claims history—plays a significant role in evaluating the risk associated with insuring a particular individual.

For instance, a clean driving history typically indicates lower risk for auto insurance, suggesting that the individual is less likely to be involved in an accident. A credit score is used as an indicator of responsibility and reliability, with a higher score often correlating with lower claims rates. Location can impact premiums as some areas are more prone to incidents such as theft or natural disasters, leading to higher risks for insurers. Lastly, a person’s claims history gives insight into how frequently they have filed claims in the past, which can influence the likelihood of future claims and, consequently, premium costs.

Other options, while they may contain factors that could affect insurance in a broader sense, do not incorporate the main components that insurers typically consider when calculating premiums in the personal lines market.