State Farm Auto Insurance Practice Test

Which type of discount can policyholders commonly make changes to?

1. Vehicle type discount

2. Driver discount

3. Homeowner discount

4. Monthly payment discount

The correct answer is: Driver discount

The driver discount is a type of discount that policyholders can commonly make changes to because it often depends on the individual driver's circumstances and behaviors. This discount is typically connected to factors such as the driver's driving record, age, and any completion of safe driving courses. Policyholders can actively influence this discount by improving their driving habits or by completing additional training programs, which can lead to a reduction in their insurance premiums. In contrast, the vehicle type discount generally depends on the specific model of the car and cannot be changed without actually switching vehicles. The homeowner discount is based on whether the policyholder owns a home and is more static, as it doesn't change frequently without a change in the homeowner status. The monthly payment discount relates to how premiums are structured and how payments are made, which is also a more fixed aspect of the insurance policy.