3
QuizMultiple Choice

Buying Insurance

Question 3 • Personal Finance - EL3403

If a driver with an insurance policy drives infrequently, it can

Answer
A
raise costs.
B
lower costs.
C
create risk.
D
share risk.

Explanation

Driving infrequently generally means fewer miles on the road and less exposure to accidents. Insurers may charge less when a driver presents a lower expected risk, so infrequent driving can lower insurance costs. The best choice is “lower costs.”

AI-written and checked against the verified answer.

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