Ricardo paid an annual premium of $1,200 in total liability coverage for his car, including up to $200,000 in bodily injury coverage and $100,000 in property damage coverage. Ten years into his policy, Ricardo caused an accident that resulted in the other driver claiming $40,000 in medical costs and $20,000 in car damage. Did the cost of the annual premiums outweigh the benefit of transferring the risk to the insurance company?

Yes, the cost of the annual premium for 10 years was the same as the accident claims.
Yes, the cost of the annual premium for 10 years was more than the accident claims.
No, the cost of the annual premium for 10 years was less than the accident claims.
No, the cost of the annual premium for 10 years was more than the accident claims.