Question

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered “full” coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?

Fret-No-More Auto Insurance
Type of Insurance Coverage
Coverage Limits
Annual Premiums
Bodily Injury
$25/50,000
$21.35

$50/100,000
$32.78

$100/300,000
$42.10

Property Damage
$25,000
$115.50

$50,000
$142.44

$100,000
$193.78

Collision
$100 deductible
$490.25

$250 deductible
$343.33

$500 deductible
$248.08

Comprehensive
$50 deductible
$105.79

$100 deductible
$88.23
a.
$473.16
b.
$572.19
c.
$732.89
d.
$831.92

Answer 1

Pick the highest limits / lowest deductibles in each category:
- Bodily Injury: $100/300,000 = $42.10
- Property Damage: $100,000 = $193.78
- Collision: $100 deductible = $490.25
- Comprehensive: $50 deductible = $105.79

Total = 42.10 + 193.78 + 490.25 + 105.79 = $831.92 → d.