If You Have Private Information That You Are a Riskier

Multiple Choice

If you have private information that you are a riskier driver than your record indicates,you are likely to buy an insurance policy that has a ________ deductible and a ________ premium.

A) high; high
B) high; low
C) low; high
D) low; low
E) None of the above answers are correct because private information has no effect in the market for auto insurance.