Final answer:
The question involves understanding how automobile insurance premiums are tallied to cover accident costs, based on a model where 100 drivers pay a $1,860 premium resulting in a $186,000 total collection to pay for damages.
Step-by-step explanation:
The question is concerned with automobile insurance premiums and how they are calculated to cover the costs of accidents. It provides a simplified example where a group of 100 drivers pays a premium of $1,860 each per year.
Using this system, the insurance company would collect $186,000 annually, which is the amount needed to cover the total cost of damages from accidents caused by these drivers. In this scenario, 60 drivers experience minor damages totaling $6,000, 30 drivers have medium-sized accidents adding up to $30,000, and 10 drivers incur large accidents costing $150,000 in total. The surcharge mentioned in the student's question is a separate matter not included in the provided details and, therefore, cannot be accurately calculated without additional context.