Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter P8, Problem 2RQ
To determine
The reason why driving record affect a person’s auto insurance rates.
Expert Solution & Answer
Explanation of Solution
If a person has good driving record, then the insurance companies can easily determine that there would be a low risk of accidents which helps the driver to get insurance at lower premium with the minimum risk factor.
Whereas, the bad driving record decrease the chances to get insurance at lower premium because there are more chances of overspeed penalties, challans, and accidents.
Therefore, driving record affect a person’s auto insurance rates.
Economics Concept Introduction
Introduction: A driving record of a person provides the information how a person is expert in driving by showing the past driving record. This record helps to determine whether there is a risk if a company insured the vehicle of that person.
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Chapter P8 Solutions
Krugman's Economics For The Ap® Course
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