Asked by Angie Habib on Sep 24, 2024

​Safe drivers buying "accident forgiveness" insurance tend to

A) ​Become even safer drivers
B) Engage in more risky driving
C) Engage in less risky driving
D) ​Not change their driving patterns

Accident Forgiveness

An auto insurance feature that protects the insured from a rate increase following the first at-fault accident they cause.

Risky Driving

Driving behavior that increases the likelihood of an accident or harm, such as speeding, driving under the influence of alcohol or drugs, or not obeying traffic signals.

Safe Drivers

Individuals who exhibit behaviors and practices that significantly reduce the likelihood of being involved in accidents or receiving traffic citations.

  • Perceive the construct of moral hazard, examining its antecedents and the implications arising.
  • Explore the impact of moral hazard on insurance scenarios.