Insurance premiums often fall substantially if a buyer purchases a policy with a high deductible,and such a policy is often purchased by individuals who self-identify as:
A)low-risk drivers.
B)high-risk drivers.
C)drivers who do not care what their premium costs are.
D)neither high- nor low-risk drivers.

Question

Quizplus · Accepted Answer

Individuals who self-identify as low-risk drivers often purchase policies with high deductibles because they are less likely to get into accidents and therefore less likely to need to make a claim. This allows them to pay a lower premium while still having coverage in the event of an accident. High-risk drivers, on the other hand, may not be able to afford a high deductible and may need to purchase a policy with a lower deductible and higher premium to ensure they have adequate coverage. Drivers who do not care about their premium costs or risk level may choose a policy based on other factors, such as convenience or brand loyalty.

Insurance Premiums Often Fall Substantially If a Buyer Purchases a Policy