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 18% multi-vehicle fleet discount.

As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in $) for the fleet.

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(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. how much can you save (in $) Flamingo by using the new coverage? (Round your answer to the nearest cent.)

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