Which characteristic can indicate a "low-risk" policyholder?

A clean driving record and good credit score are strong indicators of a low-risk policyholder because they reflect responsibility and reliability. A clean driving record suggests that the individual has not been involved in accidents or received traffic citations, indicating that they are likely to drive safely and be less likely to file claims. Additionally, a good credit score often correlates with financial responsibility, as it demonstrates the individual's ability to manage their finances wisely and pay bills on time. Insurers often assess these factors when determining risk, as low-risk individuals may be less likely to incur costs that result from accidents or other claims. As such, those with these characteristics are often offered lower premiums, reflecting their status as lower-risk policyholders.