Austin is a single 26-year-old male attending Blackfeet Community College in a rural town in Montana. He has a 100-mile commute every day. He is accident-free, has good grades, and just bought a fancy new Mercedes due to his recent full-time employment at a local restaurant. The following is a list of the types of coverage Austin may include on his insurance policy:

Bodily Injury Liability

Property Damage Liability

Collision

Comprehensive

Medical Coverage

Uninsured/Underinsured Motorist

Rental Reimbursement

GAP Insurance

Part I: Explain, using complete sentences, what types of coverage you would advise Austin to purchase and which he should not. (Assume he can afford all of them.) What was the reasoning behind your advice?

Part II: What personal factors will cause Austin's insurance rate to be higher than his counterparts?

Part III: What personal factors will allow Austin to receive a discount?