Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 84

Rick Clinton wants to purchase an automobile insurance policy with bodily injury and property damage coverage in the amounts of 50/100/50. In addition, he wants collision coverage with $250 deductible and comprehensive with no deductible. Rick is in driver classification 4 and lives in territory 3. His vehicle, a Buick Regal, is in model class B and is I year old. Rick has had two accidents and one ticket in the past 12 months and is therefore considered to be a high risk. Consequently, the insurance company has assigned a rating factor of 4.0 to his policy. As Rick's automobile insurance agent, calculate the total annual premium for his policy.