You are a relatively safe driver. The probability that you will have an accident is only $1$ percent. If you do have an accident, the cost of repairs and alternative transportation would reduce your disposable income from $$120,000$ to $$60,000.$ Auto collision insurance that will fully insure you against your loss is being sold at a price of $$0\mathrm{.}10$ for every $$1$ of coverage. Finally, suppose

that your utility function is U $=$ VI$.$

You are considering two alternatives: buying a policy vith a $$1,000$ deductible that essentially provides just $359,000$ worth of coverage, or buying a policy that fully nsures you against damage. The price of the first policy s $$5,900.$ The price of the second policy is $$6,000.$

Which policy do you prefer?