1) 8900+ 550 + 250 + 100 =
2) 14500 – 200 + 150 =
9800
14150
3) Sport truck with 42,306 miles driven on it.
Average retail value is $19,600. Add $275 for 7/8
passenger seating. Add $375 for rear air
conditioning. Deduct $225 for mileage. What is
the average retail price?
$ 20,025
9.4 Vehicle Insurance
Deducti
ble
Clause
• Each kind of insurance
may have a deductible
clause. This is the amount
that you are required to
pay for any repair bill.
For example, if your
deductible is $50 and your
repair bill is $400, you
pay $50 and the insurance
company pays $350.
Your Base premium involves three factors:
• The amount of insurance you want
• How old your vehicle is
• The insurance-rating group (which depends on
the size and value of your car).
Your annual premium is based on:
• Your base premium
• Driver-rating factors
How much is your insurance
going to cost you ?
•
•
•
•
•
•
•
Age
Marital status
Miles you drive weekly
Driving record
Gender
GPA in school
Zip Code
9.4 Vehicle Insurance
Use the Insurance Rate table on your desk.
Julie Spiros, age 21 and unmarried, drives her
vehicle to and from work. Her driver-rating factor
is 1.85. Her vehicle is classified A-11. She has
$25,000 property damage, 50/100 bodily injury,
$50-deductible comprehensive, and $50deductible collision coverages. What is her base
premium? What is her annual premium?
Liability Premium = $ 213.20
Comprehensive Premium = $81.60
Collision Premium = $246.00
Base Premium = $540.80
9.4 Vehicle Insurance
Liability Premium = $ 213.20
Comprehensive Premium = $81.60
Collision Premium = $246.00
Base Premium = $540.80
Annual Premium =
Base Premium x Drive Record Factor
Annual Premium =
$540.80 x 1.85 = $ 1000.48
9.4 Vehicle Insurance
Complete the following on your own.
•
•
•
•
Theo Norton is 18 years of age
His driver-rating factor is 2.30
The family car is classified C-15
The insurance the Norton’s have is $50,000
property damage
• 100/300 bodily injury
• $50-deductible comprehensive
• $50-deductible collision
What is his annual premium?
9.4 Vehicle Insurance
Liability Premium = $ 264.00
Comprehensive Premium = $122.80
Collision Premium = $296.80
Base Premium = $683.60
Annual Premium =
Base Premium x Drive Record Factor
Annual Premium =
$683.60 x 2.30= $ 1572.28
9.4 Vehicle Insurance
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9.4 Vehicle Insurance