Question 5 • GA-GSE Personal Finance and Economics
Examine the table comparing auto collision insurance deductibles and premiums for three drivers.Why does driver 3 most likely pay a higher monthly premium than drivers 1 and 2?
Answer
A
The insurance company views driver 3 as a risk because of accident history and age.
B
The insurance company believes that driver 3 is less likely to pay bills on time.
C
Driver 3 voluntarily pays a higher premium in order to have a lower deductible.
D
Driver 3 voluntarily pays a higher premium to receive greater coverage.