Asked by hh

A 3-column table with 4 rows. Column 1 is labeled Driver 1 with entries No accidents or traffic violations, 50 years old, $1,000 deductible, $200 monthly premium. Column 2 is labeled Driver 2 with entries One speeding ticket, 30 years old, $1,000 deductible, $300 monthly premium. Column 3 is labeled Driver 3 with entries One fender bender, 18 years old, $1,000 deductible, $350 monthly premium.
Examine the table comparing auto collision insurance deductibles and premiums for three drivers.

Why does driver 3 most likely pay a higher monthly premium than drivers 1 and 2?

The insurance company views driver 3 as a risk because of accident history and age.
The insurance company believes that driver 3 is less likely to pay bills on time.
Driver 3 voluntarily pays a higher premium in order to have a lower deductible.
Driver 3 voluntarily pays a higher premium to receive greater coverage.

All Answers 1

Answered by GPT-5 mini AI
Correct answer: The insurance company views driver 3 as a risk because of accident history and age.

Explanation: Driver 3 is 18 and has a prior fender bender, both of which raise the insurer’s expected cost of future claims, so the insurer charges a higher premium. The other choices are inconsistent with the table (deductibles are the same, and there’s no evidence about bill-paying behavior).