Which of the following best describes how auto insurance companies manage risk?

A. High-risk drivers are not able to sign up for insurance

B. The insurance company balances low-risk drivers with high-risk drivers

C. The insurance company charges higher rates to higher-risk drivers

D. Both B & C

E. All of the above

Question

Cody Shaw

Advanced Placement (AP)

14 November, 18:25

Which of the following best describes how auto insurance companies manage risk?

A. High-risk drivers are not able to sign up for insurance

B. The insurance company balances low-risk drivers with high-risk drivers

C. The insurance company charges higher rates to higher-risk drivers

D. Both B & C

E. All of the above

+3

Answers (2)

Know the Answer?

Osvaldo Wiley · Answer 1

Auto insurance companies manage the increased cost associated with high-risk drivers by both charging them higher rates and balancing them out with low-risk drivers.

Spencer Wiggins · Answer 2

Im going to go with D or C because the higher the risk you are the higher your insuance will be