Question

1. what is one of the trade - offs for having a renter’s insurance policy with a low deductible?

○ higher monthly payments
○ lower interest rates
○ lower monthly payments
○ higher payouts for claims

Explanation:

In insurance, a deductible is the amount the policyholder pays before the insurance company pays. A low deductible means the insurance company has more risk, so they charge higher monthly premiums (payments) as a trade - off. Lower interest rates are not related to renter's insurance deductibles. Lower monthly payments would be a trade - off for a high deductible. Higher payouts for claims are not a trade - off of a low deductible (the payout amount depends on the loss, not just the deductible). So the trade - off for a low deductible renter's insurance policy is higher monthly payments.

Answer:

A. higher monthly payments