Many people do NOT fully insure against risk because
A)they are risk averse.
B)the insurance companies are all crooks.
C)the insurance offered is less than fair.
D)the insurance offered is more than fair.

Question

Quizplus · Accepted Answer

Insurance is often perceived as less than fair because the premiums paid over time can exceed the expected value of claims. This discrepancy makes some individuals opt not to fully insure, as they feel the cost does not equate to the benefit.

Many People Do NOT Fully Insure Against Risk Because