Question
Why does geographic location affect the cost of premiums?(1 point)
Responses
a. There are less car mechanics in certain areas so the cost to repair is higher.
b. Because people in urban areas tend to buy flashier cars.
c. Because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.
d. Because insurance companies believe that people in urban areas should use mass transit.
Responses
a. There are less car mechanics in certain areas so the cost to repair is higher.
b. Because people in urban areas tend to buy flashier cars.
c. Because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.
d. Because insurance companies believe that people in urban areas should use mass transit.
Answers
GPT-4o mini
The correct response is:
**c. Because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.**
**c. Because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.**