Assignment 12 - Assignment 12.1 A 2 Renaldo Garcia paid an annual premium of $3,200 for auto collision insurance with a $500 deductible clause His

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Assignment 12.1 A 2. Renaldo Garcia paid an annual premium of $3,200 for auto collision insurance with a $500 deductible clause. His steering went out and he hit a tree, causing $4,000 damage to his car. How much did he save this year by having insurance? $3,200 premium + $500 deductible = $3,700 total payment $4,000 damages - $3,700 paid = $300 saved 4. Drivers A and B have indentical insurance coverage. Driver A has an excellent driving record and receives a 15% discount on the standard premium. Driver B has numerous citations and pays 50% above the standard rate. The standard rate in both cases is $1,600. How much more does driver B pay for insurance than driver A? Driver A: $1,600 X 0.85 = $1,360 Driver B: $1,600 X 1.5 = $2,400 $2,400 - $1,360 = $1,040 more Alternative method: $1,600 X 0.65 = $1,040 B. 6. Amy Tan and John Rogers live in a state in which no-fault insurance is mandatory. They have identical full coverage of $50,000 liability and property damage per accident, comprehensive insurance, and collision insurance with a $350 deductible. John lost control of his car on an icy street and struck Amy’s car, a parked motorcycle, and a fence. Amy had medical expenses of $780 John and medical expenses of $560. Amy’s car had damage of $1,350. John’s car had
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This note was uploaded on 08/03/2011 for the course ECON 101 taught by Professor Hughes during the Spring '11 term at Ashford University.

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Assignment 12 - Assignment 12.1 A 2 Renaldo Garcia paid an annual premium of $3,200 for auto collision insurance with a $500 deductible clause His

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