Allister's Auto Insurance Company adjusts its rates on automobile insurance annually. The price of the company's policies reflects all of the following EXCEPT the
A) perceived danger of driving.
B) previous year's accidents.
C) replacement value of the automobile.
D) driver's driving record.
E) age of the automobile.

Question

Quizplus · Accepted Answer

Insurance companies, like Allister's, annually adjust their rates on automobile insurance in every state to reflect the previous year's accident experience. The price of the policy also reflects the age of the automobile, the replacement value of the automobile, and the driver's driving record.

Allister's Auto Insurance Company Adjusts Its Rates on Automobile Insurance