Which of the Following Statements About Shopping for Auto Insurance

question 34

Multiple Choice

Which of the following statements about shopping for auto insurance is true?

• A)Adequate physical damage insurance on your auto is the most important consideration.
• B)Consideration should be given to dropping liability coverage if you drive an older car with a low market value.
• C)To obtain the lowest premium,an applicant should review his or her eligibility for all discounts offered.
• D)Price comparisons are of little value since auto insurers tend to charge the same premiums.

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Definitions:

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing.

Projected Addition

An estimate of future additions or expansions in a company's operations, assets, or capacities based on planned projects or investments.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of tax paid on any additional income earned.