please see chart
The Flamingo Cab Company of Cougar Creek is interested in purchasing $250 deductible collision insurance and full-coverage comprehensive insurance to cover its fleet of 10 taxicabs. As a requirement for the job, all drivers already carry their own liability coverage in the amount of 100/300/100. Cougar Creek is rated as territory 3 . Five of the cabs are 4-year-old Checker Towncars, model class Y. Two of them are 2-year-old Chrysler station wagons, model class R. The remaining three are new Buick sedans, model class C. Because the vehicles are on the road almost 24 hours a day, they are considered to be very high risk and carry a rating factor of 5.4. They are, however, subject to an 16% multi-vehicle fleet discount. (a) As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in \$) for the fleet. $ (b) When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $500 deductible collision and $100 deductible comprehensive. Using Table 19 7, how much can you save (in \$) Flamingo by using the new coverage? (Round your answer to the nearest cent.) $ ) TABLE 19-7 Motor Vehicle Insurance Annual Premiums-Collision and Comprehensive Rates Territories 1 and 2 Territories 3 and 4 The Flamingo Cab Company of Cougar Creek is interested in purchasing $250 deductible collision insurance and full-coverage comprehensive insurance to cover its fleet of 10 taxicabs. As a requirement for the job, all drivers already carry their own liability coverage in the amount of 100/300/100. Cougar Creek is rated as territory 3 . Five of the cabs are 4-year-old Checker Towncars, model class Y. Two of them are 2-year-old Chrysler station wagons, model class R. The remaining three are new Buick sedans, model class C. Because the vehicles are on the road almost 24 hours a day, they are considered to be very high risk and carry a rating factor of 5.4. They are, however, subject to an 16% multi-vehicle fleet discount. (a) As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in \$) for the fleet. $ (b) When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $500 deductible collision and $100 deductible comprehensive. Using Table 19 7, how much can you save (in \$) Flamingo by using the new coverage? (Round your answer to the nearest cent.) $ ) TABLE 19-7 Motor Vehicle Insurance Annual Premiums-Collision and Comprehensive Rates Territories 1 and 2 Territories 3 and 4
