Asymmetric Information in Insurance Although asymmetric information is present in all types of insurance, we’ll stick with auto collision insurance. Some drivers are careful and some are aggressive. A careful driver is less likely to have an accident than an aggressive driver. Each driver knows which type he or she is, but the insurance company doesn’t know. Yet it would benefit the insurance company to know, for it could then charge the higher-risk aggressive driver a higher premium and the lower-risk careful driver a lower