Question

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change? AA Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/$50,000 $22.50 $50/100,000 $31.75 $100/300,000 $40.25 Property Damage $25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision $100 deductible $520.00 $250 deductible $415.25 $500 deductible $275.75 Comprehensive $50 deductible $110.25 $100 deductible $100.00 a. $12.48 b. $31.31 c. $149.75 d. $275.75 Please select the best answer from the choices provided A B C D

Answer 1

Answer:

The correct option is option a which is $12.48.

Explanation:

As the deductible for the collision is given as $50.00

where as the value for the Comprehensive is given as $43.79

Now when both the values are considered as similar thus the difference is given as $50.00-$43.79=$6.24

Now as the difference can appear in either way so by 2 instances, the values are $6.24*2=$12.48