Which option can lead to increased premiums under a Personal Auto Policy?

Modifying the vehicle for performance enhancements can lead to increased premiums under a Personal Auto Policy because such modifications typically raise the vehicle's value and may increase the risk associated with insuring it. Insurance companies assess risk based on various factors, including modifications that can enhance speed or performance. These enhancements may make the vehicle more appealing to thieves or increase the likelihood of an accident due to the vehicle's improved capabilities. Consequently, insurers often charge higher premiums to cover the additional risks presented by modified vehicles.

In contrast, maintaining a clean driving record, using the vehicle only for personal use, and driving under the speed limit generally contribute to lower risk profiles and can help keep premiums lower. Insurance companies favor drivers who exhibit safe driving behavior, as they are statistically less likely to file claims, making such characteristics beneficial for premium calculations.