Preeda Lipper, a $2019$ graduate with a degree in biochemistry, has a promising career ahead of her. Already, her employer has offered to pay for graduate school, and in the past $2$ years, she has been promoted three times. Three years ago she purchased a townhouse for $$210,000$ in Laurel, Maryland. Today, her townhouse is valued at over $$270,000.$ More recently, Preeda purchased a new Ford Escape hybrid. She appreciates the energy savings and the safety the SUV gives her on her $45-$mile round$-$trip commute into Baltimore. Overall, Preeda feels economically secure$.$ She has over $$35,000$ in savings and growing retirement accounts. On her drive home from work last night, she heard a radio report about a person who lost everything when he caused an auto accident and was underinsured. Preeda certainly does not want this to happen to her. Help her consider the following questions and issues.

QUESTIONS:

I need help with ALL questions. Chegg guidelines SUGGESTS one questions but allows us to ask multiple if need be$.$

$1.$ After reviewing her personal automobile policy, Preeda realized that she had $$75,000$ of single$-$limit$,$ Part A coverage; $$15,000$ of Part B coverage; $$75,000$ of Part C coverage; and $$full$$ Part D coverage. Is Preeda adequately insured? Explain your answer.

$2.$ Preeda was quoted $$1,400$ a year for split$-$limit coverage with the following limits: $75/150/50,$ assuming a $$100$ deductible. Are these limits adequate, given Preeda$$s financial situation and potential liability? What would you recommend as a minimum limit for this coverage? What will be the impact of your recommendation on her policy premium?

$3.$ The insurance company that gave her the quote for split$-$limit coverage also indicated that she could choose a $$100,$ $$250,$ $$500,$ or $$1,000$ deductible. If Preeda wants to reduce her premium costs, what deductible should she choose? Why?

$4.$ If she decides not to boost her liability limits$,$ how will others be compensated for their losses$$property$,$ medical, or funeral$$if she is involved in a serious accident and found liable for expenses that exceed her policy limits$?$ Would others be compensated by Preeda$$s policy for their injuries if she is not liable? If so$,$ under what part of the policy?

$5.$ Should Preeda continue to purchase Part C and Part D coverage? Why or why not?

$6.$ What types of discounts might be available for Preeda that will help reduce her annual insurance premium?

$7.$ How does Principle $5$: Stuff Happens, or the Importance of Liquidity address Preeda$$s concerns about balancing adequate coverage, a reasonably high deductible to reduce the premium, and the need for emergency savings?

$8.$ Preeda has heard about an umbrella policy but is unsure if it is needed. Would you recommend that she purchase such a policy? Explain your answer. Approximately how much will such a policy cost, assuming that she insures her townhouse and car with the same insurance company?

$9.$ If Preeda was to get in an accident during her daily commute, why should she never admit guilt, sign anything, or comment on how much insurance she has?