Question

after reviewing her driving record for the past 3 years, cindys insurance company offers her a good driver discount of 4.5%. her original policy was based on the premiums listed below. what is her new annual premium including the discount?
cindys auto insurance policy
type of insurance coverage coverage limits annual premiums
bodily injury $50/100,000 $31.75
property damage $25,000 $120.50
collision $500 deductible $275.75
comprehensive $100 deductible $100.00
a. $504.24
b. $523.50
c. $528.00
d. $551.76

Explanation:

Step1: Calculate original total premium

$31.75 + 120.50+275.75 + 100.00=528$

Step2: Calculate discount amount

$528\times0.045 = 23.76$

Step3: Calculate new premium

$528- 23.76=504.24$

Answer:

a. $504.24$