Which factor can lead to an increase in auto insurance premiums?

The correct choice highlights that a high-risk occupation can lead to an increase in auto insurance premiums. This is due to the fact that certain occupations are statistically associated with higher accident rates or greater likelihood of claims. For insurance companies, these assumptions are based on data that reflects the experiences of drivers in specific job categories. For instance, someone who has a job that requires extensive driving or operates vehicles in a high-risk environment might be viewed as more likely to file a claim, leading to increased premiums to mitigate that perceived risk.

In contrast, factors like an excellent driving record, being over the age of 25, or having low annual mileage typically indicate a lower risk of accidents and claims, often resulting in lower insurance premiums rather than an increase. Therefore, the implications of occupation on risk perception make it a significant factor influencing auto insurance costs.