Question: How would I calculate actuarially fair price for auto insurance per year if my yearly chance of getting in a traffic accident is 1 in

How would I calculate actuarially fair price for auto insurance per year if my yearly chance of getting in a traffic accident is 1 in 50 and getting in a traffic accident causes $50,000 in damages?

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How would I calculate actuarially fair price for auto insurance per year if my yearly chance of getting in a traffic accident is 1 in 50 and getting in a traffic accident causes $50,000 in damages?

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