When provinces make car insurance mandatory for all drivers, it

When provinces make car insurance mandatory for all drivers, it



(a) raises rates for everyone because it brings bad drivers into the pool.
(b) raises rates for high-risk drivers.
(c) may lower rates for all drivers to the extent that it keeps low-risk drivers in the pool.
(d) prevents high-risk drivers from "selecting out" to the detriment of low-risk drivers.


Answer: c


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