4
practice testMultiple Choice

Practice Test

Question 4 • Personal Finance

Part A: What increases premium cost?

Answer
A
low mileage
B
safe driving
C
no claims
D
higher risk behavior

Explanation

Insurance premiums tend to rise when a driver is more likely to have an accident or file a claim. Higher risk behavior increases that likelihood, so it can increase the premium cost. Low mileage, safe driving, and having no claims generally help keep premiums lower.

AI-written and checked against the verified answer.

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