On an automobile insurance policy,a deductible is the dollar amount that the driver will pay toward damages before the insurance company will pay anything.Asymmetric information suggests that

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High-risk drivers are more likely to buy a policy without any deductible because they anticipate needing to make claims and want to minimize their out-of-pocket expenses. This is a result of asymmetric information, where the insurer cannot fully assess the risk level of the driver.

On an Automobile Insurance Policy,a Deductible Is the Dollar Amount