A key principle of buying insurance is to retain risks you can afford and insure against risks you can't afford. It is therefore important to recognize that some cost-saving decisions are more advisable than others when choosing types of coverages and liability limits. Consider Juanita and the adjustments she is considering making to her policy. First determine the effect each change would have on her monthly premium, then indicate whether each change is generally advisable by selecting "Yes" or "No" in the final column. Smart Savings on Insurance Premiums Juanita's policy is a FAP and provides liability coverage with limits of 100/300/100, $10,000 medical payment insurance, and uninsured and underinsured motorist coverage with limits of 15/30. She has collision and comprehensive auto insurance, both with a $500 deductible. Effect on Premium Advisable Eliminate Coverage C Decrease collision and comprehensive deductible to $100 Switch from limits of 100/300/100 to 250/500/250 Suppose Juanita gets quotes from other auto insurance companies and finds that one company offers the same coverage as her current plan but for $15 less per month. True or False: Rates can vary substantially across policies with identical coverage; therefore, Juanita should consider switching to the cheaper company. O False O True A key principle of buying insurance is to retain risks you can afford and insure against risks you can't afford. It is therefore important to recognize that some cost-saving decisions are more advisable than others when choosing types of coverages and liability limits. Consider Juanita and the adjustments she is considering making to her policy. First determine the effect each change would have on her monthly premium, then indicate whether each change is generally advisable by selecting "Yes" or "No" in the final column. Smart Savings on Insurance Premiums Juanita's policy is a FAP and provides liability coverage with limits of 100/300/100, $10,000 medical payment insurance, and uninsured and underinsured motorist coverage with limits of 15/30. She has collision and comprehensive auto insurance, both with a $500 deductible. Effect on Premium Advisable Eliminate Coverage C Decrease collision and comprehensive deductible to $100 Switch from limits of 100/300/100 to 250/500/250 Suppose Juanita gets quotes from other auto insurance companies and finds that one company offers the same coverage as her current plan but for $15 less per month. True or False: Rates can vary substantially across policies with identical coverage; therefore, Juanita should consider switching to the cheaper company. O False O True
