Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

Question

Quizplus · Accepted Answer

Peter is managing his risk by assuming it, which means he is accepting the potential cost of an accident by setting aside money to cover it, rather than transferring that risk to an insurance company through a collision insurance policy.

Peter Jacobs Has Set Aside $5,000 in Case He Has