Math-in-CTE Lesson Plan Template
Lesson Title: Reducing the High Cost of Driving
Author(s):
Sally Rigeman
Phone Number(s):
563-344-6562
Lisa Hughes
Mike Fladlien
563-263-6141
563-263-6141
Lesson BUS#_RiskMan_Auto_Insurance
E-mail Address(es):
srigeman@aea9.k12.ia.us
lkhughes@muscatine.k12.ia.us
mcfladli@muscatine.k12.ia.us
Occupational Area: Business; Computer Tech; Drivers ED
CTE Concept(s): Risk (personal, property, liability); losses; risk management; rating factors (controlled and
uncontrolled); insurance (agent, company); decision-making process; policy; premium; deductible; claim;
insured/policyholder;
Math Concepts: adding and multiplying whole numbers and decimals; interpreting charts and tables; substituting data
into formulas
Lesson Objective:
How can you reduce the high costs of driving?
In all 50 states, the law requires car drivers to provide proof of insurance.
Supplies Needed:
Internet websites; various insurance resources; project cards
TEACHER NOTES
(and answer key)
THE "7 ELEMENTS"
1. Introduce the CTE lesson.
CTE Terms:
Assessing prior knowledge (inquiry) – ask students about their familiarity with different
types of insurance. Write their list of types on chart paper, board, or overhead. Next, hand
out 8.5 x 11 sheets of construction paper with a CTE term (right column, boldface type) on
each to pairs of students. Ask each pair/team to summarize a working definition for the term
printed on their sheet. Ask students if there are other insurance–related terms that should
be added to the list. Construction sheets with terms and definitions are posted on the walls.
Students do a “gallery walk” around the room and use post-it notes to ask questions or give
Risk
Personal risk
Property risk
Liability risk
Loss
feedback. Vocabulary terms remain on the walls during the lesson so that students can
modify definitions. www.visuwords.com
Risk management
Insurance
Insurance agent
Decision-making process
Policy
Premium
Deductible
Claim
Liability insurance
Bodily injury insurance
Property damage insurance
Collision insurance
Comprehensive insurance
Annual Premium
Base Premium
Driver Rating Factors
2. Assess students’ math awareness as it relates to the CTE lesson.
Multiple Choice
Scenario (Launch):
1. TBD
1. Jack is a 17 year old Quad City high school student with a “C” average. He drives a Ford
Explorer. Since getting his license a year ago, Jack has received 2 speeding tickets and
been involved in 2 “fender benders”. If Jack were paying his own insurance premium, it
would be:
2. TBD
A.
B.
C.
D.
About $600 every six months
About $900 every six months
About $1,200 every six months
About $1,500 every six months
2. Because his parents carry Jack as a second driver on their auto insurance policy, how
3. Age, driving record, 2 claims,
academic standing
4. Kind, model, and value of car;
type of coverage and deductible,
distance driven to work and yearly;
city of residence; marital status.
5. Insurance costs can change
when any of the factors associated
much has their premium increased every six months since he began driving a year ago?
A.
B.
C.
D.
About $300
About $600
About $900
About $1,200
3. What factors does Jack have that make insuring him a high risk for an insurance
company?
4. Are there other factors that insurance companies consider when determining the cost of
an auto insurance policy?
5. What could Jack do to lower his insurance costs?
Worksheet for CTE math (adding money) and practice using a calculator.
Students use online resources to find Bluebook value for family-owned own vehicles.
with the initial insurance application
change.
For young drivers, insurance
quotes are based on the following
factors:










Age and driving record
Accident record
Academic standing
Type & value (age) of car
Marital status
Type of coverage
Deductible coverage
Purpose for driving
Zip code you live in
Number of miles driven per
year
Internet access
3. Work through the math example embedded in the CTE lesson.
New terms:
Insurance companies use tables to determine base premiums.
Annual base premium
Base Premium for a Private Passenger Automobile
Annual premium
Bodily Injury Limits
Property Damage
Limits
25/50
$ 206.40
$ 212.40
$ 220.80
$25,000
$50,000
$100,000
25/100
$ 218.80
$ 224.80
$ 233.20
50/100
$ 213.20
$ 237.20
$ 245.60
100/200
$ 252.00
$ 258.00
$ 266.40
100/300 300/300
$ 258.00 $ 286.80
$ 264.00 $ 293.20
$ 272.40 $ 301.20
Physical Damage Premium
Age
Group
A
B
Comprehensive
$50 Deductible
C
D
A
B
Collision
$50 Deductible
C
D
Coverage
10
$76.80
$65.20
$62.00
$59.20
$225.60
$214.00
$204.00
$194.40
11
$81.60
$77.60
$74.00
$70.40
$246.00
$233.20
$222.80
$212.00
Insurance Rating group
12
13
14
$95.20
$108.00 $122.00
$90.40
$102.40 $115.60
$86.00
$98.00
$110.40
$82.00
$93.20
$105.20
$266.80 $287.20 $307.60
$253.20 $272.40 $291.60
$241.60 $260.00 $278.40
$230.00 $247.60 $265.20
15
$135.60
$128.40
$122.80
$116.80
$328.00
$311.20
$296.80
$282.80
(Chart in Mathematics With Business Applications, 4th edition, Glencoe, p.246)
Annual Base Premium =
Annual Premium
=
Liability
+
Premium
Comprehensive
Premium
Annual Base Premium
X
+
Collision
Premium
Driver-Rating Premium
John wants to purchase auto insurance for his car. He contacts Secure Insurance and asks
for a quote. His car age group is D and his insurance rating group is 10. He has a driver-
rating factor of 1.20. The coverage he wants is $50,000 property damage; 50/100 bodily
injury; $50-deductible comprehensive; and $50-deductible collision.
1. What will his annual base premium be?
2. What will his annual premium be?
1. $237.20
$ 59.20
$194.40
$490.80 annual base premium
2. $490.80 X 1.20 = $588.96
annual
premium
4. Work through related, contextual math-in-CTE examples.
Sandy’s driver-rating factor is 3.90 and her car age group is B and insurance rating group is
14. If she wants the same insurance coverage as John, what will her annual base premium
and annual premium be?
$237.20
$115.60
$291.60
$644.40
$644.40 X 3.90 = $2,513.16
How much more will she have to pay for the same coverage as John?
5. Work through traditional math examples.
Using the chart above, if a car is in age group C and the principal driver has an insurance
rating of 10 and a driver-rating factor of 1.50, what is the annual base premium and the
annual premium for an insurance policy with 25/100 bodily injury and $100,000 property
damage, and $50-deductible comprehensive and $50-deductible collision?
$2,513.16 - $588.96 = $1,924.20
$233.20
$ 62.00
$204.00
$499.20 annual base premium
$499.20 X 1.50 = $748.80
annual
premium
6. Students demonstrate their understanding.
Mike Fladlien uses his car mainly to drive to and from work. His car is age group B and his
insurance rating group is 12. Currently, his driver-rating factor is now 2.65. However, he
learns that his driver-rating factor will drop to 2.15 after he is married in October. If he has
$25,000 property damage, 50/100 bodily injury, $50-deductible comprehensive and $50-
$213.20
$90.40
$253.20
$556.80
deductible collision, how much less will his annual premium be when he gets married?
$556.80 X 2.65 = $1,475.52
$556.80 X 2.15 = $1,197.12
$ 278.40
7. Formal assessment.
$556.80; $640.32
Debra Pfab uses her car to drive to and from work. Her insurance coverage includes 50/100
bodily injury and $25,000 property damage. Her driver-rating factor is 1.15. She has $50deductible comprehensive and $50-deductible collision insurance coverage on her car. Her
car is in age group B, and rating group 12. What are her annual base premium and her
annual premium?
Base Premium for a Private Passenger Automobile
Property Damage Limits
$25,000
$50,000
$100,000
Bodily Injury Limits
25/50
25/100
50/100
$ 206.40
$ 212.40
$ 220.80
$ 218.80
$ 224.80
$ 233.20
$ 213.20
$ 237.20
$ 245.60
Physical Damage Premium
Coverage
Comprehensive
$50 Deductible
Collision
$50 Deductible
Age
Group
A
B
A
B
Insurance Rating group
12
13
14
$95.20
$108.00 $122.00
$90.40
$102.40 $115.60
$266.80 $287.20 $307.60
$253.20 $272.40 $291.60
NOTES:
Suggestions for student engagement and group work:

In teams, select a “standard auto insurance coverage” plan. Then ask all students to choose a car they’d like to own after college and have
them contact an insurance agent to find out how much it would cost to insure their vehicle. Pool the results on a class chart.

Have students contact their family insurance agent to find out how much difference there is between $100, $250 and $500-deductible
coverage.

Have students use the Internet to determine which cars are the most and least expensive to insure.

Create an auto insurance game. Have each student draw a card describing 8 driver characteristics and have each student contact an
insurance agent for an auto insurance quote or see if there are insurance calculators online. Tabulate the class data.