Having a large deductible on your auto or homeowner's insurance is a form of

Question

Quizplus · Accepted Answer

Having a large deductible on your auto or homeowner's insurance is indeed a form of managing risk, as it involves making decisions on how much risk to retain versus transfer to an insurer. It is also a form of self-insuring, since by opting for a higher deductible, you are choosing to cover a larger portion of any potential losses yourself. Additionally, this choice involves financial decision-making, as it affects your insurance premiums and potential out-of-pocket expenses in the event of a claim. Therefore, all the options A, B, and C are correct.

Having a Large Deductible on Your Auto or Homeowner's Insurance