Question

The Superior Insurance Company of Maine recently advertised the following discounts for qualified​ drivers: 6 percent discount to drivers who have not had an accident in the past seven years 15 percent discount for those with two or more​ cars; 5 percent for insuring both home and car 10 percent discount for those who drive less than​ 10,000 miles a year 25 percent discount for drivers who are good students​ (have a B average or​ above) 10 percent discount for drivers aged 50 or​ older; 5 percent for drivers aged 24 to 49 3 percent discount for drivers who has taken a defensive driving course 15 percent discount for noncommuters​ (less than 30 miles​ round-trip) 11 percent discount for cars with antitheft devices ​Jana, 25 years​ old, currently pays $840 annually for a PAP for her 2011 Chevy Malibu. She uses her car to commute 40 miles​ round-trip to work and for her biannual​ cross-country trips to visit relatives. Last year she received a speeding ticket but took a defensive driving course in order to remove the ticket from her​ record; she has never had an accident. When she purchased her car she had an alarm installed. Jana is sure that she qualifies for at least one or more discounts. Calculate her new premium if she transfers to the Superior Insurance Company.

Answer 1

Answer:

$630

Explanation:

Calculation for her new premium if she transfers to the Superior Insurance Company

First step

Drivers aged 24 to 49 0.05

Discount for cars with antitheft device 0.11

Driving Course 0.03

Accident Free 0.06

TOTAL 0.25

Second step is to Calculation for her new premium

New premiun=$840*(1-0.25)

New premium =$840*0.75

New premium =$630

Therefore her new premium if she transfers to the Superior Insurance Company will be $630