Question

Insurance premiums are calculated by analyzing clients’ potential level of risk. Which of the following drivers would most likely pay the LOWEST auto insurance premium?
Experienced driver with 120 mile commute to work


Experienced driver with a good driving record


New driver with less than one year of experience


Driver with multiple accidents in recent years

Answer 1

Answer:

The correct answer is letter "B": Experienced driver with a good driving record.

Explanation:

Insurances do take into consideration the level of risk individuals represent according to the type of coverage they apply for. While talking about car insurance, an experienced driver with a good driving record represents a minimum risk for the company, thus, the individual will likely pay a lower premium than someone who has had several vehicle accidents with a negative driving history.