Question

because of an accident royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. his original policy was set up using the premiums listed below. what is his new annual premium after the increase for the accident?

royces auto insurance policy

type of insurance coverage	coverage limits	annual premiums
property damage	$50,000	$144.75
collision	$500 deductible	$275.75
comprehensive	$100 deductible	$100.00

a. $514.76
b. $543.00
c. $548.20
d. $571.24

Explanation:

Step1: Calculate original total premium

$22.50 + 144.75+275.75 + 100.00=543$

Step2: Calculate the increase amount

$543\times0.052 = 28.236$

Step3: Calculate the new premium

$543+28.236 = 571.236\approx571.24$

Answer:

d. $571.24$