Question

Younger drivers, especially males, between the ages of 16 and 25 are more likely to get in accidents, and therefore pay higher insurance premiums. True or False

Answer 1

Younger drivers, especially males between the ages of 16 and 25, are more likely to get into accidents and pay higher insurance premiums.

Step-by-step explanation:

In general, younger drivers, especially males between the ages of 16 and 25, are more likely to get into accidents and therefore pay higher insurance premiums. This is because actuarially fair insurance premiums are set based on the risk group individuals fall into. Statistically, young male drivers have more car accidents compared to young female drivers, which results in higher premiums for them.