After a person buys insurance for his car,he will generally not care for his car as much as he otherwise would.This is an example of:

Question

Quizplus · Accepted Answer

This is an example of moral hazard, where individuals alter their behavior in a risky way because they are insured against the potential losses. In this case, the person may not take measures to prevent damage to the car or maintain it well, knowing that the insurance company will cover the costs of any repairs or replacement.

After a Person Buys Insurance for His Car,he Will Generally