Which of the following would NOT be likely to help reduce the cost of automobile insurance?

• A. Purchasing a more expensive car
• B. Maintaining a clean driving record
• C. Bundling auto insurance with other policies
• D. Increasing your deductible

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of factors that influence automobile insurance costs. Insurance companies assess risk based on various factors, and actions that reduce risk or potential claims typically lower insurance premiums.
2. Step 2: Analyze how each option affects insurance costs: Maintaining a clean driving record reduces risk, so it usually lowers premiums; Bundling auto insurance with other policies often results in discounts; Increasing your deductible means you pay more out-of-pocket in case of a claim, which generally lowers your premium.
3. Step 3: Consider the effect of purchasing a more expensive car. More expensive cars typically cost more to repair or replace, increasing the insurer's risk and likely raising the insurance premium.
4. Step 4: Identify which option does NOT help reduce costs by comparing the effects: Since purchasing a more expensive car increases risk and cost, it does not help reduce insurance costs.
5. Step 5: Conclude that among the given options, purchasing a more expensive car is the factor that would NOT be likely to help reduce the cost of automobile insurance.