To discover how the size of the deductible affects the premium by comparing 2 policies of the same line (type) from the same carrier with different deductibles.

This REQUIRED EXERCISE involves a little research that will give you an idea of

First, decide which line of insurance you will research (choose only one):

auto

renters

homeowners

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

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, 2/20/2023."

You will also need to note the premium payment frequency -- i.e., whether it is paid monthly, quarterly, etc. Ideally, the payment frequency will be the same for both of the deductibles you chose, to make it easier to compare them.

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:

premium payment frequency:

2nd deductible:

premium based on 2nd deductible:

premium payment frequency:

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?