Question

Liability insurance coverage would cost more for an expensive car than for an inexpensive car of the same age. True or False

Answer 1

True. Liability insurance coverage is based on the potential risk and cost of damages. Expensive cars would have higher insurance premiums compared to inexpensive cars of the same age.

Step-by-step explanation:

True. Liability insurance coverage is based on the potential risk and cost of damages. Expensive cars are generally more costly to repair or replace, so the insurance premiums for an expensive car would be higher compared to an inexpensive car of the same age. Insurance companies take factors like the car's value, make, model, age, and driving history into account when determining premiums.