A factor that is likely to have the greatest effect on the cost of automobile insurance is the __________.
A)distance covered by the insured car
B)lessee of the insured car
C)owner's academic grades
D)owner's driving record

Question

A factor that is likely to have the greatest effect on the cost of automobile insurance is the __________. ​
A)distance covered by the insured car
B)lessee of the insured car
C)owner's academic grades
D)owner's driving record

Quizplus · Accepted Answer

The owner's driving record is the factor that has the greatest effect on the cost of automobile insurance. Insurance companies base their premiums on the likelihood of a policyholder getting into an accident, and a history of accidents and traffic violations increases that likelihood, leading to higher premiums. The other factors listed (distance covered by the insured car, lessee of the insured car, owner's academic grades) may have some impact on the cost of insurance, but not as significant as the owner's driving record.

A Factor That Is Likely to Have the Greatest Effect