Final answer:
Completing a defensive driving course is not a situation that would cause insurance premiums to increase; it would typically lead to a decrease. Insurance premiums can be influenced by factors like driving history, vehicle safety rating, and installation of security devices. Insurers classify drivers into risk groups to determine premium costs.
Step-by-step explanation:
All of the following are situations that could cause your insurance premium to increase or decrease, except completing a defensive driving course. When you file a claim for a car accident or receive a traffic ticket for speeding, insurance companies may view you as a higher risk, which can lead to increased premiums. Conversely, installing a security system in your home or completing a defensive driving course typically demonstrates responsible behavior and may encourage insurers to offer a discount or reduce your premium as it's considered a lower risk.
It's important to understand how car insurance works, as it generally protects the driver from having to pay large out of pocket expenses in the event of an accident. Insurance rates can be affected by a variety of factors including the vehicle's safety rating, one's driving history, the history of the vehicle, and even the driver's age. Insurance companies classify individuals into risk groups, charging lower premiums to those they deem to be lower risks. This is because if everyone paid the same rate, low-risk drivers would in effect be subsidizing the higher risk ones.