which of these will likely increase the cost of your car insurance the most? increasing your insurance policy liability coverage from 50/100/10 to 100/300/50
Added by Christopher G.
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The current policy is 50/100/10, which means it covers $50,000 for bodily injury per person, $100,000 for total bodily injury per accident, and $10,000 for property damage. Show more…
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Donna, who is single and 30 years old, has received several speeding tickets recently and was shocked by the effect on her auto insurance. Donna drives a 2002 Pontiac Firebird, is currently not covered by health insurance, has an emergency fund of $25,000, has an income of $100,000 per year, and has an investment portfolio of $230,000. She is trying to reduce the price of her auto insurance. Which of the following actions is most likely to be advisable? a) lower her liability limits to the minimum allowed in her state b) drop her medical payments coverage c) raise her deductible from $250 to $1,000 d) drop her comprehensive coverage and keep collision-only e) drop everything from her policy except the liability insurance
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How Much of a Major Auto Accident Loss Will Be Covered? Ashley Diamond of Estes Park, Colorado drives an eight-year-old Toyota valued at $5,600. She has a $75,000 personal automobile policy with $10,000 per-person medical payments coverage and both collision ($200 deductible) and comprehensive coverage. David Smith of Loveland, Colorado, drives a four-year-old Chevrolet Malibu valued at $9,500. He has a 25/50/15 family automobile policy with $20,000 in medical payments coverage and both collision ($100 deductible) and comprehensive insurance. Late one evening, while he was driving back from Rocky Mountain National Park, David's car crossed the centerline of the road, striking Ashley's car and forcing it into a ditch. David's car also left the road and did extensive damage to the front of a roadside store. The following table indicates the damages and their dollar amounts. (c) How much will David's bodily injury liability protection pay? (d) To whom and how much will David's property damage liability protection pay? Item Amount Bodily injuries suffered by Ashley $6,800 Bodily injuries suffered by Fran (a passenger in Ashley's car) $28,634 Ashley's car $9,600 Bodily injuries suffered by David $2,700 Bodily injuries suffered by Cecilia (a passenger in David's car) $12,845 David's car $9,500 Damage to the roadside store $14,123 Complete the following chart and use the information to answer these questions: (a) How much will Ashley's policy pay Ashley and Fran? (b) Will subrogation rights come into play? In what way?
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