Question

Harry is 25 years old with a 1.55 ratings factor for his auto insurance. if his annual base premium is $1,012, what i his total premium?

A. 1,568.00
B. 2,530
C. 1,582.55
D. 1,842.25

Answer 1

The cost of insurance is based on the annual base premium. Annual premium is the amount one pays each year for insurance coverage and the annual base premium depends on how much amount of coverage one wants.

So, given is :

The rating factor is 1.55

Base premium amount is = $1012

Total Annual Premium = Annual Base Premium x Driver Rating Factor

=
`1012*1.55=1568.6`

Hence, option A = $1568 is correct.

Answer 2

The total annual premium is given by the annual base premium multiplied by the driver-rating factor.

Therefore:
1012 × 1.55 = 1568.60

Therefore, the correct answer is A) 1,568.00$