To calculate the total annual premium, multiply the youthful-operator factor (2.95) by the sum of bodily injury ($238.20) and property damage ($166.20) premiums.
2.95×(238.20+166.20)=2.95×404.40=1192.98.
Therefore, the total annual premium is $1192.98.
In this case, the youthful-operator factor is 2.95, indicating that the person is considered to have a higher risk, possibly due to being a young or inexperienced driver. The annual premium for bodily injury is $238.20, and for property damage, it is $166.20. To find the total premium, the formula would be:
Total Premium = Factor × (Bodily Injury Premium + Property Damage Premium)
Total Premium = 2.95 × ($238.20 + $166.20)
Calculating this, we get:
Total Premium = 2.95 × $404.40 = $1192.98
Therefore, the correct answer is $1192.98. This total represents the cost of liability coverage for bodily injury and property damage for the specified individual, factoring in the higher risk associated with their youthful-operator factor. It's essential for insurance companies to consider such factors when determining premiums to reflect the potential risks associated with different demographics and driving experiences.
Complete question
A person's youthful-operator factor is 2.95. The annual premium for liability coverage is $238.20 for bodily injury and $166.20 for property damage.
$1192.98
$1190.03
$1163.48
$404.40