Auto insurance plans have provided significant profits to the auto insurance industry because of generally higher rates than those found in the voluntary market.

Question

Quizplus · Accepted Answer

Auto insurance plans, often referred to as assigned risk plans, typically offer coverage at higher rates due to the increased risk associated with insuring drivers who cannot obtain insurance through the voluntary market. These plans are not designed for profit but to ensure that high-risk drivers are able to obtain legally required insurance.

Auto Insurance Plans Have Provided Significant Profits to the Auto