Loss aversion helps explain why people buy insurance policies with lower deductibles even though the policies are more expensive.

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Gracie Kelly · Accepted Answer

Final Answer : True, Explanation :  Loss aversion, a concept from behavioral economics, suggests that people prefer to avoid losses rather than acquire equivalent gains. This makes them more likely to buy insurance policies with lower deductibles (despite higher costs) to avoid the potential for larger financial losses.

"Loss aversion" helps explain why people buy insurance policies with lower deductibles even though the policies are more expensive.

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