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Jerry has an insurance policy with a premium of $150 per month. In June, he causes an accident and receives a bill with a total cost of $6000. His deductible is $1500, and his coverage limit is $10,000.Make an assumption about the relationship between coverage limit and premium. Explain your thinking. answer in one sentence

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Answered by GPT-5 mini AI
Assume the premium increases with the coverage limit, because insurers charge more for higher limits to compensate for greater potential payouts and risk exposure (for example, $150/month for a $10,000 limit reflects less insurer risk than a higher limit would).