Calculating Car Insurance Costs Cost of Accident Probability Products Correct? Just like before, we add to find the totals for the probability and product columns, then divide (sum $1,000,000 0.00001 0 of products)/(sum of probabilities) to find the expected value for the cost of a customer's $100,000 0.002 0 accidents. $10,000 0.065 0 Once the insurance company knows what they will have to spend on the average customer they can set $1,000 0.17 0 the premium (price) that they will charge their customers. $0 0 0 Column Sums: Assuming the insurance company wants to recoup the cost of accidents and make a profit of $200 per customer each year, what premium will they have to charge each customer for the year? Expected Accident Cost You'll need to add together their expected payout Insurance Premium per customer plus the profit they hope to earn. Total Slide Score out of 6 0