Week 7 Discussion 2 FP101

Week 7 Discussion 2 FP101 - Angie has to choose whether she...

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Angie has some options when choosing a deductible on her auto insurance. She can save $150 a year by switching from a $500 to a $1,000 deductible. A deductible is a portion of the bill that you will be responsible for in case of an accident or loss. Insurers require a higher deductible for policy holders that will be financially responsible for a larger share of the bill. They require a substantially lower deductible for policy holders that will be financially responsible for a smaller share of the bill.
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Unformatted text preview: Angie has to choose whether she will pay the smaller or larger share of the bill in case of an accident or loss. If she is a safe driver, it will be in her best interest to take responsibility for the larger share of the bill. She will be able to save $150 dollars a year with the higher deductible, but if there were to be an accident or a loss; she will have to pay out an extra $500 dollars for the higher deductible rather than if she were to choose the lower deductible....
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This note was uploaded on 03/17/2012 for the course ALL all taught by Professor All during the Spring '10 term at University of Phoenix.

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