View the step-by-step solution to:


This question was created from Dated 1-22-19 Thought Questions Assignment 1 from Chapter 1, Appendix A and Chapter 2 _3_ (2).docx


3a. Many car insurance companies offer discounts for safe drivers. The promise is lower
premiums or a reduction in deductibles for customers that remain accident-free for
a specified period of time. The discounts are not without a cost, however.
Policyholders must pay an additional premium (periodic fee paid for insurance
coverage) in order to participate in the program. Understanding opportunity cost,
explain how safe-driver programs might be beneficial for some customers but not

Top Answer

It would be beneficial for drivers who make claims. If a client never makes a claim or if the probability of making the claim... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question