The Brocks are assessing their insurance coverage. They have had several changes over the years, including an increased value of their home, the purchase of a second vehicle, and the birth of a third child. This has all caused them to look at their insurance needs in the area of health, disability, homeowners, and auto insurance.

Josh's current employer offers him only 30 days of sick leave. They need to consider this factor when assessing disability insurance plans for Josh. Currently, neither he nor Pam have disability insurance.

Since Pam's work activities have varied, the family is dependent on Josh's health insurance. In recent weeks, his company has reviewed several types of plans. These alternatives include traditional health insurance programs and HMOs, with a wide variety of coverage and cost differences.

Both Pam and Josh Brock are pleased with their lives and various family activities. They now have three children, are enjoying their home, and are more financially secure than six years ago. Yet the Brocks still have financial needs they must address.

Several changes have affected their financial planning. The value of their home has increased due to inflation and home improvements. They have purchased a used car to meet additional transportation needs. These situations must be considered in relation to insurance needs for the Brock household.

Q4. What factors should the Brocks consider in deciding whether to purchase collision insurance coverage for their used car? Outline any information/assumptions that would influence the factors you have outlined.