Final answer:
High risk drivers will pay more on their premium because insurance companies often classify people into risk groups and charge lower premiums to those with lower risks.
Step-by-step explanation:
High risk drivers will pay more on their premium because insurance companies often classify people into risk groups and charge lower premiums to those with lower risks. This is done to distribute the financial burden of high-risk drivers among the low-risk drivers. For example, in a scenario where 60 drivers have very low damage, 30 drivers have medium-sized accidents and 10 drivers have large accidents, if all drivers pay the same premium, the low-risk drivers will effectively be paying for the high-risk drivers' damages. Therefore, to compensate for the higher chances of accidents and damages, high-risk drivers are charged higher premiums to cover their potential costs.