Which of the following statements about the factors affecting automobile insurance rates is true?
A)The cost of collision coverage increases as a car gets older.
B)Because of high speeds in rural areas,rural drivers tend to pay more for auto insurance than city drivers pay for auto insurance.
C)Young unmarried male drivers tend to have fewer accidents than young married male drivers in the same age category.
D)People who drive a car to and from work tend to be charged higher rates than those who use a car for pleasure purposes.

Question

Quizplus · Accepted Answer

People who use a car for commuting purposes tend to have a higher risk of being involved in accidents than those who only use their car for pleasure purposes. Therefore, insurance companies tend to charge higher rates to drivers who drive to and from work.

Which of the Following Statements About the Factors Affecting Automobile