Question
Which of the following would result in paying the lowest insurance premiums?(1 point)
Responses
high likelihood of loss, a low deductible
high likelihood of loss, a low deductible
low likelihood of loss, no deductibles
low likelihood of loss, no deductibles
low likelihood of loss, a large deductible
low likelihood of loss, a large deductible
high likelihood of loss, no deductibles
Responses
high likelihood of loss, a low deductible
high likelihood of loss, a low deductible
low likelihood of loss, no deductibles
low likelihood of loss, no deductibles
low likelihood of loss, a large deductible
low likelihood of loss, a large deductible
high likelihood of loss, no deductibles
Answers
There are no human answers yet.
Answered by
GPT-4o mini
To pay the lowest insurance premiums, you would want to choose an option that minimizes the insurer's risk. The option that results in the lowest premiums is:
**low likelihood of loss, a large deductible.**
This is because a low likelihood of loss means that the insurance company expects fewer claims, and a large deductible means that the insured is agreeing to cover a larger portion of any loss themselves before the insurance kicks in, reducing the insurer's risk and therefore the premium.
**low likelihood of loss, a large deductible.**
This is because a low likelihood of loss means that the insurance company expects fewer claims, and a large deductible means that the insured is agreeing to cover a larger portion of any loss themselves before the insurance kicks in, reducing the insurer's risk and therefore the premium.
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