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The Open Road A vehicle can be a symbol of freedom, but it requires responsibility.

The Open Road A vehicle can be a symbol of freedom, but it requires responsibility. What responsibilities come along with owning and operating a vehicle?. Lesson Objective Use tables to compute the annual premium for vehicle insurance. Content Vocabulary. liability insurance.

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The Open Road A vehicle can be a symbol of freedom, but it requires responsibility.

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  1. The Open Road A vehicle can be a symbol of freedom, but it requires responsibility. What responsibilities come along with owning and operating a vehicle?

  2. Lesson Objective Use tables to compute the annual premium for vehicle insurance. Content Vocabulary • liability insurance liability insurance Provides financial protection to the policyholder against claims for bodily injury and property damage as a result of an accident. collision insurance Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object such as a telephone pole. comprehensive insurance Pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and just about any cause other than a collision.. • collision insurance • comprehensiveinsurance

  3. Lesson Objective Use tables to compute the annual premium for vehicle insurance. Content Vocabulary • deductible clause deductible clause A clause in an insurance policy that requires the insured to pay a certain amount before the insurance company pays. annual premium The amount you pay each year for insurance coverage. • annual premium

  4. Example 1 Della Welch is the principal operator of her vehicle. Her driver-rating factor is 2.20. Her insurance includes 50/100 bodily injury and $50,000 property damage. Her vehicle is in age group A and insurance-rating group 13 (or A, 13). She has $50-deductible comprehensive and $50-deductible collision insurance.

  5. Example 1 (cont.) What is her annual base premium? What is her annual premium? (Use Figure 9.3 on page 351 of your textbook to find important information for this problem.)

  6. Example 1 Answer: Step 1 Find the annual base premium. Liability + Comprehensive + Collision Premium Premium Premium $237.20 + $108.00 + $287.20 = $632.40

  7. Example 1 Answer: Step 2 Find the annual premium. Base Premium × Driver-Ratio Factor $632.40 × 2.20 = $1,391.28

  8. Example 2 Use Figure 9.3 on page 351 of your textbook. Soseki Nagamatus has a driver-rating factor of 3.1. His insurance includes 100/300 bodily injury limits and $100,000 property damage limits. His vehicle is in age group B and insurance-rating group 15 (B, 15). He has $50-deductible comprehensive and $50-deductible collision insurance. What is his annual premium? What is annual base premium?

  9. Example 2 Answer: Step 1 Find the annual base premium. Liability + Comprehensive + Collision $272.40 + $128.40 + $311.20 = $712.00

  10. Example 2 Answer: Step 2 Find the annual premium. Base Premium × Driver-Rating Factor $712.00 × 3.1 = $2,207.20

  11. Practice 1 Driver-rating factor: 2.0. Age, rating group: C, 15. Coverage: 300/300 bodily injury, $100,000 property damage, $50-deductible comprehensive, and $50-deductible collision. What is the annual base premium? What is the annual premium?

  12. Practice 1 Answer Annual base premium: $720.80 Annual premium: $1,441.60

  13. Practice 2 Jason Edwards drives his car to and from work and for pleasure. His driver-rating factor is 2.50. He has $50-deductible comprehensive, $50-deductible collision, 50/100 bodily injury, and $50,000 property damage insurance. His vehicle is classified as D, 14. What is his annual base premium? What is his annual premium?

  14. Practice 2 Answer Annual base premium: $607.60 Annual premium: $1,519

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