Final answer:
To reduce auto insurance premiums, completing a defensive driving course, bundling policies, and adding anti-theft devices can help, while filing small claims often increases premiums by indicating higher risk to insurers.
Step-by-step explanation:
In order to reduce your auto insurance premiums and qualify for discounts, filing multiple small claims for minor damages would not be recommended, unlike the other options listed. Completing a defensive driving course, bundling auto insurance with home insurance, and installing an advanced anti-theft system in your car are actions that typically help in lowering insurance costs. Filing multiple small claims can actually lead to higher premiums as it indicates to the insurer that you are more likely to file a claim, thus presenting a higher risk.
It is important to note how the insurance company assesses risk and determines premiums. By understanding the different risk groups and the effects of claims on your insurance rates, you can make more informed decisions to maintain or reduce the cost of your insurance.