This REQUIRED EXERCISE involves a little research that will give you an idea of how the size of the deductible affects the premium.

First, decide which of these types of policies you will research (choose only one):

auto policy

renters policy

homeowners policy

Then choose the insurance company you will research. Choose just one.

Finally, research the carrier's premiums for 2 different deductibles (e.g., $250 and $500) for the type of policy you chose. You will need to provide a source (see below). The source can be a link to the carrier's Web site or a statement such as, "conversation with XYZ Ins. Co. Agent Joanne Smith, 6/22/2021."

Here are the requirements for this REQUIRED EXERCISE:

1. Post the premiums in the format below (copy the format into your post, then fill in the information).

Insurance Co.:

type of policy:

1st deductible:

premium based on 1st deductible:

2nd deductible:

premium based on 2nd deductible:

source:

(NOTE: You must provide a source to earn credit.)

2. What is your reaction to the difference in premiums in 1 above? If you were purchasing the policy, which would you prefer, the lower deductible with the higher premium, or the higher deductible with the lower premium? Why?