Question

Rosa recently went online to review her auto insurance policy. Her policy is a Personal Automobile Policy and provides liability coverage with limits of $100/300/100, $10,000 medical payment insurance, and uninsured and underinsured motorist coverage with limits of $1/2. She has collision and comprehensive auto insurance, and both have a $500 deductible. Consider the following adjustments Rosa could make to her policy and the effect they would have on her monthly premium. Indicate whether each change would be worth the additional cost or cost savings by selecting "Yes" or "No" in the final column of the table. Smart Savings on Insurance Premiums Effect on Premium? Worth It? Switch from limits of $100/300/100 to $250/500/250 Decrease collision and comprehensive deductible to $100 Eliminate Coverage C Suppose that Rosa gets quotes from other auto insurance companies and finds that one company offers the same coverage as her current plan, but for $15 less per month. True or False

Answer 1

Rosa can consider switching her limits and decreasing her collision and comprehensive deductible to potentially save on her auto insurance policy. The effect each change would have on her premium and whether they are worth it depends on her specific needs and circumstances. As for finding another company offering the same coverage for $15 less per month, further evaluation is necessary to determine its accuracy and value.

Step-by-step explanation:

Rosa can make the following adjustments to her auto insurance policy:

1. Switch from limits of $100/300/100 to $250/500/250 - By increasing her limits, Rosa would have higher coverage in the event of an accident. This change would likely result in a higher premium, but it would provide more protection. No
2. Decrease collision and comprehensive deductible to $100 - By lowering her deductibles, Rosa would be responsible for less out-of-pocket costs in the event of a claim. This change may result in a slightly higher premium, but it could be worth it if Rosa wants to reduce her financial burden in case of an accident. Yes
3. Eliminate Coverage C - It is unclear what Coverage C refers to in this context, as it is not specified in the question. Without more information, it is not possible to determine if eliminating this coverage would be worth it in terms of cost savings. N/A

In regards to the statement about Rosa finding another company offering the same coverage for $15 less per month, without knowing the specifics of Rosa's current policy and the terms of the other company's policy, it is difficult to determine if this statement is true or false. Rosa should carefully review the details of the other company's policy to ensure that it truly offers the same coverage and assess if the potential savings outweigh any additional costs or drawbacks.

Answer 2

True. If Rosa can find the same coverage for $15 less per month from another company, switching would be a good way to save money on her auto insurance.

Change Effect on Premium Worth It?

Switch from limits of $100/300/100 to $250/500/250 Increase No

Decrease collision and comprehensive deductible to $100 Increase No

Eliminate Coverage C Decrease No

Switching from limits of $100/300/100 to $250/500/250: Increasing liability coverage limits will typically increase your premium because it provides more protection in case of an accident.

Decreasing collision and comprehensive deductible to $100: Reducing your deductible means you'll pay less out of pocket if you have a claim, but it will also increase your premium.

Removing Coverage C, which protects against uninsured or underinsured drivers, may cut costs but expose financial vulnerability in such accidents. Decisions on insurance changes should align with personal needs and risks. Comparing multiple quotes from insurers helps assess options effectively.

True. If Rosa can find the same coverage for $15 less per month from another company, switching would be a good way to save money on her auto insurance.