Premium is an upfront payment made to avoid losses from accidents or incidents. If one maintains a good driving record, the insurance company may reward discounts on premiums.
What is an insurance premium?
An insurance premium is an amount that is paid to an insurer for covering the losses may occur due to happening or non-happening of an unwanted event.
A car insurance may charge premiums as per the driving history of the driver. If the accident history is significant, the premium charged will be at a premium price and vice versa.
Hence, the option C; if a good driving record is maintained by a driver, car insurance company may reward with a discount on the amount of premiums.
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