Asked by Hermi Aiko Lupac on Jun 24, 2024
Verified
Driver Cooper has a poor driving record and pays double the usual premium as a high-risk driver. The regular premium would be $510 for a year. If Cooper must pay the high-risk premium every year for 5 years, how much more will Cooper pay for insurance premiums than a low-risk driver receiving a 10% discount over the same 5-year period?
Insurance Premiums
Regular payments made to an insurance company to maintain coverage of a policy.
Regular Premium
Periodic payments made for an insurance policy.
- Assess the financial benefits on premium amounts for drivers identified as low and high risk over determined periods.
- Compute the effect of applying premium penalties for high-risk drivers over multiple years.
Verified Answer
CW
Learning Objectives
- Assess the financial benefits on premium amounts for drivers identified as low and high risk over determined periods.
- Compute the effect of applying premium penalties for high-risk drivers over multiple years.
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