9.4 vehicle insurance 1)8900+ 550 + 250 + 100 = 2)14500 – 200 + 150 = 3)sport truck with 42,306...
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9.4 Vehicle Insurance
Warm Up 11/14
1)8900+ 550 + 250 + 100 =
2)14500 – 200 + 150 =
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?
9800
14150
$ 20,025
The focus of this section is to use tables to compute the annual premium for vehicle insurance. In California, it is against the law to dive a car without auto insurance. This is an additional cost that needs to be considered when purchasing a vehicle.
COMPREHENSIVE INSURANCE: protects you from losses due
to fire, vandalism, theft, and so
on. COLLISION INSURANCE:
pays to repair YOUR car if its in an accident.
LIABILITY INSURANCE: Insurance that you
need to have in case you are involved in an
accident.
•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.
Deductible Clause
How much is your insurance going to cost you ?
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
What are some factors that might affect your Driver Rating?
• Age• Marital status• Miles you drive weekly• Driving record• Gender• GPA in school • Zip Code
Car Insurance
9.4 Vehicle Insurance
9.4 Vehicle Insurance
Liability Premium = $ 213.20Comprehensive Premium = $81.60
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 $50-deductible collision coverages. What is her base premium? What is her annual premium?Collision Premium = $246.00
Base Premium = $540.80
9.4 Vehicle Insurance
Liability Premium = $ 213.20Comprehensive Premium = $81.60Collision Premium = $246.00Base Premium = $540.80
Annual Premium = Base Premium x Drive Record
FactorAnnual 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 = $ 264.00Comprehensive Premium = $122.80Collision Premium = $296.80Base Premium = $683.60
Annual Premium = Base Premium x Drive Record
FactorAnnual Premium =
$683.60 x 2.30= $ 1572.28
9.4 Vehicle Insurance
Classwork assignment
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