If you think you're a low-cost customer who is unlikely to need to file a claim, you'll often get a much better deal if you choose the insurance plan that
A)has a single option for all buyers.
B)allows buyers to opt-in and opt-out at any time.
C)has a high deductible.
D)reduces risk aversion.

Question

Quizplus · Accepted Answer

Insurance plans with high deductibles typically have lower premiums because the insured assumes more risk. This makes them a good option for individuals who may not need to file a claim and are looking for a low-cost option. Choosing a plan with a high deductible can also encourage individuals to be more cautious with their assets, which decreases the likelihood of filing a claim.

If You Think You're a Low-Cost Customer Who Is Unlikely