Question

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? a. Increase coverage on bodily injury to $100/300,000. b. Increase coverage on property damage to $50,000. c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000. d. Increase coverage on bodily injury to $100/300,000 and on property damage to $100,000. Please select the best answer from the choices provided A B C D

Answer 1

Answer:

Changes that would increase Susie’s limits the most without increasing her monthly premium by more than $5.00 is Option C: Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000.

Explanation:

Lower coverage does not necessarily means lower premiums.

Premium is the amount of one makes to keep his insurance policy active. Lower coverage would mean lower premium but that means there would be a few restrictions on the insurance policy while covering that policy.

Full coverage policies of the vehicle not only covers the liabilities but also the damage that occurs to the car.

If Susie increases the 'coverage' on the injury of the body to '$100/300,000' and on property damage to '$50,000', then her monthly premium would not increase from more than $5.00.

Answer 2

Answer:

C

Explanation: