Question

Which vehicle characteristic plays the least important role in determining the cost of auto insurance premiums?

A) Age of the vehicle

B) Type of fuel required

C) Make and model

D) Cost of replacement parts

Answer 1

The type of fuel required (B) plays the least important role in determining insurance premiums, unlike factors like vehicle age, make and model, and cost of replacement parts.

Step-by-step explanation:

In determining the cost of auto insurance premiums, various vehicle characteristics are considered by insurance companies. However, the characteristic that plays the least important role is B) Type of fuel required. Insurance companies generally focus on the safety rating, driving history, age, make and model, and the cost of replacement parts when calculating premiums.

The type of fuel a vehicle uses is not typically a major factor in this calculation. Therefore, when it comes to insurance expenses, other factors such as the age of the vehicle, make and model, and cost of replacement parts are more significant.

Answer 2

The type of fuel required (option B) plays the least important role in determining auto insurance premiums, compared to the age of the vehicle, make and model, and the cost of replacement parts.

Step-by-step explanation:

When determining the cost of auto insurance premiums, several factors are considered, but the type of fuel required (B) plays the least important role compared to others listed. The age of the vehicle (A), make and model (C), and the cost of replacement parts (D) all have a more significant impact on insurance costs. Factors such as the vehicle's safety rating, the driver's history, and, for used cars, the vehicle's history, are crucial in rate determination.

Regarding the initial passage references, while hybrid cars might cost more to purchase, there is no direct correlation between the type of fuel and insurance premiums. The cost of the vehicle and the potential out of pocket expenses in case of an accident, typically influenced by the cost of replacement parts, have a more direct bearing on premium calculations.