Question

Regina finds a new car costing $25,000 and a used car costing $17,000. Which car will have higher insurance premiums and why?

Answer 1

The used car will have higher insurance premiums because there is a higher chance that it will malfunction and that they will have to pay for your expenses. A new car is cheaper when it comes to premiums because it is expected to last and the insurance companies are safer in this regard.