Which of the following would result in paying the lowest insurance premiums?(1 point)

Question

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

Answer 1

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.