You are renting a car at the airport and they ask you if you want to buy supplemental insurance during your rental period. They will charge you $10 per day for the insurance and you are renting for 14 days. You talked to your insurance agent who told you that you have your normal car insurance coverage while driving a rental just as though it were your own car. Your policy carries a $500 deductible. Assume the overall risk of having an accident is 1% for all drivers in all conditions at all times. Your risk of an accident during this rental period could be greater or less than the overall average. What would you do? Answer the following questions.

IMPORTANT: These answers should not contain a discussion about the rental company's or your insurance coverage, deductibles, future premium cost or anything about insurance. This should be about assessing the risks associated with driving the rented car, not how you would financially manage the risk of an accident. Please limit the financial analysis to the $140 cost of full coverage or being exposed to your $500 deductible.

1. How would you analyze the financial aspects of this decision?

2. What additional information would you like to have to help you make this decision? Your answer should consist of information that would allow you to further assess your probability of having an accident.

3. What are the direct, tangible factors that influence your decision? Repetition from #2 is expected.

4. What are the intangible ones? Repetition from #2 is expected.

5. What information sources would allow you to assess the uncertainties involved?

6. What would you do?