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A friend wants to understand what affects the cost of auto insurance.Explain the factors used to determine the automobile insurance premiums a person pays.

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The main factors that influence the amou...

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An umbrella policy is designed to cover:


A) expensive personal property.
B) additional buildings on your property.
C) property when traveling away from home.
D) major personal liability suits.
E) flood damagE.

F) B) and C)
G) All of the above

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Which one of the following factors is used to determine a person's driver classification?


A) age
B) type and age of vehicle
C) claims in your geographic area
D) insurance company claim processing costs
E) state insurance premium regulations

F) A) and E)
G) B) and E)

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Peter Jacobs has set aside $5,000 in case he has an accident in his 1980 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?


A) avoidance
B) reduction
C) assumption
D) shifting
E) creation

F) B) and C)
G) A) and E)

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