Peter Jacobs has set aside $5,000 in case he has an accident in his 1980 Honda Civic. He does not have collision insurance on this car. How is Peter managing his risk?

Question

Quizplus · Accepted Answer

Peter is assuming the risk by setting aside money in case of an accident instead of purchasing collision insurance. He is taking on the financial burden himself, rather than shifting it onto an insurance company or avoiding the risk altogether.

Peter Jacobs Has Set Aside $5,000 in Case He Has