Question

Which of the following best describes how auto insurance companies manage risk?

Answer 1

Exchange alludes to the buy of protection, where the danger of misfortune is accepted by the insurance agency as a byproduct of the premium.

Evasion implies making moves to not cause the hazard by any stretch of the imagination, for example, never driving an auto to keep away from the danger of impact.

Decrease implies finding a way to bring down the seriousness of a misfortune on the off chance that it happens, for example, introducing a sprinkler framework fire may even now happen, however it won't spread if the sprinkler framework puts the fire out.