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Question 5 of 10 At what point does collision insurance stop being beneficial for a consumer? A. When the cost of the deductible becomes greater than the cost of the premium B. When the value of the car is greater than the cost of the deductible C. When the value of the car is greater than the cost of the premium D. When the cost of the premium becomes greater than the value of the car

Asked By DreamCatcher86 at

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Reggie

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Answer

D

Explanation

Collision insurance stops being beneficial for a consumer when the cost of the premium becomes greater than the value of the car. This is because the consumer would be paying more for the insurance than the car is worth, which is not a cost-effective decision. The purpose of collision insurance is to cover the costs of repairs to the consumer's car in the event of a collision. If the cost of the premium is higher than the value of the car, it would not make sense for the consumer to continue paying for collision insurance.