What changes can Susie make to her auto insurance policy …

Mathematics Questions

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie’s limits the most without increasing her monthly premium by more than $5.00?

Short Answer

Susie aims to keep her insurance premium increase under $5 per month by selecting policies with specific coverage limits: $100,000 for bodily injury per person, $300,000 for total bodily injury per accident, and $50,000 for property damage. She should carefully evaluate different plans and confirm that her chosen limits fit within her budget before finalizing her insurance plan.

Step-by-Step Solution

Step 1: Understand Premium Cost Limits

Susie wants to keep her insurance premium increase to a maximum of $5 per month. It is essential to evaluate the options available to choose the best plan while adhering to this budget. To do this, she’ll need to review different policy plans and their associated costs carefully before making a decision.

Step 2: Select Appropriate Coverage Levels

The best coverage limits that Susie can opt for are $100,000 for bodily injury per person, $300,000 for total bodily injury per accident, and $50,000 for property damage. Choosing these limits means the new insurance will cover the following:

  • Up to $300,000 to injured victims in car accidents she causes.
  • $100 per person for bodily injury.
  • $50,000 for property damage.

Step 3: Finalize the Insurance Plan

To ensure Susie’s premium increase remains at or below $5, she should finalize her choice of the insurance plan with the above coverage levels. It’s crucial to confirm with her insurance provider that these limits align with her budget expectations. Carefully reviewing her options will help her secure the insurance plan that provides adequate coverage without significant cost increases.

Related Concepts

Premium Cost Limits

The maximum allowable increase in insurance premiums that a policyholder is willing to accept, which influences their choice of insurance plans.

Coverage Levels

The specified limits of financial protection provided by an insurance policy, detailing the amount that will be paid for bodily injury and property damage claims.

Insurance Plan Finalization

The process of selecting and confirming an insurance policy that meets coverage needs and budget constraints, ensuring the chosen plan aligns with the policyholder’s financial expectations.

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