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Warm Up 11/14

Warm Up 11/14. 9800. 14150. $ 20,025. 8900+ 550 + 250 + 100 = 14500 – 200 + 150 =

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Warm Up 11/14

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  1. Warm Up 11/14 9800 14150 $ 20,025 8900+ 550 + 250 + 100 = 14500 – 200 + 150 = 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?

  2. 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.

  3. LIABILITY INSURANCE: Insurance that you need to have in case you are involved in an accident. 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.

  4. 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

  5. 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 ?

  6. Age • Marital status • Miles you drive weekly • Driving record • Gender • GPA in school • Zip Code What are some factors that might affect your Driver Rating?

  7. Car Insurance

  8. 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? Liability Premium = $ 213.20 Comprehensive Premium = $81.60 Collision Premium = $246.00 Base Premium = $540.80

  9. 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

  10. 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?

  11. 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

  12. Classwork assignment Page 326 3 - 10

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