The Sampsons A Continuing Case As the next step in reviewing their finances, the Sampsons are assessing their insurance needs related to their vehicles and home. They indicated the amount of money they spend on insurance on their personal balance sheet in Chapter 2. They currently have auto insurance on their two cars. Each insurance policy has a $1,000 deductible and specifies limits of 100/200/20 ($100,000 per person injured in an accident, $200,000 for all people combined, and $20,000 to cover other damage to the car or to other property). Dave and Sharon live in a no-fault state. Their homeowners insurance covers the market value of their home and has a deductible of $10,000. Their policy does not cover floods, which periodically occur in their area. Their house has never been flooded, though, so Dave and Sharon are not concerned.

1, Advise the Sampsons regarding their car insurance. Do they have enough insurance? Do they have too much insurance? How might they be able to reduce their premium?

2, Consider the Sampsons homeowners insurance. Do they have enough insurance? Do they have too much insurance? Should they increase their deductible?