Less skilled drivers are more likely to buy auto insurance with lower deductibles. Economists use this as an example of:

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Quizplus · Accepted Answer

This is an example of adverse selection, a situation where there is a lack of symmetric information prior to a transaction. In this case, less skilled drivers, who know their higher risk of accidents, are more likely to opt for insurance policies with lower deductibles, potentially leading to a pool of insured drivers that is riskier than the average.

Less Skilled Drivers Are More Likely to Buy Auto Insurance