OTL Ontario Auto Insurance License Practice Test 2025 – Comprehensive Exam Prep

A driver can qualify for a discount on their insurance premium through various methods that demonstrate responsibility and lower risk. Having a clean driving record indicates that the driver has not been involved in accidents or received traffic violations, which suggests a lower likelihood of filing claims in the future. Additionally, completing driver education courses can enhance a driver's skills and knowledge of safe driving practices, further reducing the chances of incidents. Bundling policies refers to purchasing multiple types of insurance (such as auto and home insurance) from the same provider, often leading to significant savings. These factors collectively demonstrate to insurance companies that the driver is a low-risk policyholder, which is why they are likely to offer discounts on premiums.

The other options do not relate to qualifying for discounts effectively. Increasing coverage limits generally raises the premium, purchasing the most expensive plan does not guarantee discounts, and avoiding all insurance plans is not a viable way to qualify for discounts. Understanding these concepts is essential for making informed decisions about automobile insurance.