Question

which of the following statements is not something you should be thinking when considering changes in your auto insurance policy? a. higher deductibles mean lower premiums but more out - of - pocket expense in the event of an accident. b. the premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident. c. the more types of insurance you include in your policy, the more protected you are from financial loss in the event of an accident. d. lower coverage limits mean lower premiums but more restrictions on the insurance company when covering injuries and damage resulting from an accident. please select the best answer from the choices provided

Explanation:

• Option a: Higher deductibles indeed lead to lower premiums and more out - of - pocket expense in case of an accident, so it's a valid consideration.
• Option b: The premium doesn't guarantee that you'll never pay more than the deductible. There are situations like multiple claims, or damages exceeding policy limits where you may pay more than just the deductible, so this is an incorrect statement.
• Option c: More types of insurance in a policy generally offer more protection from financial loss in an accident, a valid thought.
• Option d: Lower coverage limits mean lower premiums and more restrictions on the insurance company when covering accident - related injuries and damage, a valid point.

Answer:

B. The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.