Why is there a tradeoff between a lower deductible and higher premium?
A)
Paying a lower dedu...
Social Studies, 12.12.2020 15:50 aletadaboss
Why is there a tradeoff between a lower deductible and higher premium?
A)
Paying a lower deductible means you can afford higher premiums.
B)
A lower deductible means the insurance company must pay more in an
accident so they make you pay for that risk.
The insurance company wants you to pay a lower deductible so they offer
you a higher premium as an incentive,
D)
It works just like the law of demand, the higher the price, the lower the
quantity demanded,
Answers: 2
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