Case Application Paige, age 26, has purchased a new Ford sedan. She has a clean driving record. Collision coverage on the car in a small midwestern city where she lives would cost approximately $650 every six months with a $250 deductible, $480 with a $500 deductible, and $360 with a $1,000 deductible. The state has a compulsory insurance law that requires minimum liability limits of $25,000/$50,000/$25,000. Paige would like to purchase colli- sion insurance with a $250 deductible because the out-of- pocket cost to repair her car in an accident where she is at fault would be relatively small. She wants to purchase the minimum liability limits, because she has few financial assets to protect. Paige is also concerned that she might be seriously injured by a driver who has no insurance. Assume that Paige asks your advice concerning her auto insur- ance coverages. Based on the given facts, answer the following questions. Assume that Paige asks your advice concerning her auto insur- ance coverages. Based on the given facts, answer the following questions. a. Paige wants to know why auto insurance costs so much. Explain to her the factors that determine auto insurance rates. b. Do you recommend that Paige purchase collision insur- ance with a $250 deductible? Explain your answer. c. Do you agree with Paige that only minimum liability limits should be purchased because she has few financial assets to protect? Explain your answer. d. Assume that Paige adds uninsured motorists coverage to her policy. Would she be completely protected against the financial consequences of a bodily injury caused by an uninsured driver? Explain your answer. e. Paige would like to reduce her auto premiums because her monthly car payments are high. Explain to Paige the various methods for reducing or holding down auto insur- ance premiums