Final answer:
The statement that it is financially advisable to take out the lowest deductible possible is not always true, as a higher deductible can lead to lower premiums. One should consider their ability to pay a higher deductible versus the cost of higher premiums when choosing their insurance option.
Step-by-step explanation:
The statement that is not true concerning comprehensive and collision insurance is: B) Financially, it is advisable to take out the lowest deductible possible. This statement is not always true because a lower deductible typically means higher insurance premiums.
When determining the appropriate deductible, several factors should be considered, including the value of the vehicle, the owner's ability to pay out-of-pocket costs, and the likelihood of filing a claim.
It's often financially advisable to choose a higher deductible to lower the premium, especially if you are a safe driver or have the financial resources to cover the higher deductible in case of a claim.
Other key points: A) If you are financing a car, comprehensive and collision insurance is typically required by the lender. C) Dropping this coverage on an older car that is not being financed may make financial sense if the cost of insurance outweighs the potential benefit.
D) The deductible is indeed a form of self-insurance, as it's the amount you agree to pay before your insurance coverage kicks in.