Why does geographic location affect the cost of premiums? (1 point)
O There are less car mechanics in certain areas so the cost to repair is higher.
O Because people in urban areas tend to buy flashier cars.
Because insurance companies review the statistical history of claims for an area and if there is an
increased risk of claims for accidents or theft, they will raise the premium.
O Because insurance companies believe that people in urban areas should use mass transit.

The right response is an option (c), meaning that premiums will be increased if there is a higher chance of claims for accidents or theft. Insurance firms examine the statistical history of claims for a region.Why does geography affect how much a premium will cost?Pricing may be less expensive in a market that is nearby than it would be in a market that is farther away because of the lower cost of transportation. If the products are competing in a crowded market with many other high-quality options for customers, prices may be lower.Why do medical expenses vary by location?Spending and utilization variations between geographical areas may be the result of individual or regional-specific variables. Individual features and interests of people residing in each of the various geographic locations are examples of person-specific elements that influence the need for care.Learn more about the cost of premiums: https://brainly.com/question/14414537#SPJ4