There is asymmetric information in the auto insurance market because companies know more about customers' driving habits and can predict very well the chances of customers getting into an accident than the customers.

Question

Quizplus · Accepted Answer

In the auto insurance market, the asymmetry of information typically exists because customers know more about their own driving habits and risk of getting into an accident than the insurance companies do.

There Is Asymmetric Information in the Auto Insurance Market Because