Question

You have car insurance with a $200 premium every three months and a $500 deductible. How much would you pay in a six-month period if you had an accident that was your fault and cost $150 to repair?

Answer 1

In a six-month period, you would pay a total of $550 for car insurance premiums and accident repairs since the repair cost is less than the deductible.

Step-by-step explanation:

The insurance question you have asked relates to how much you would pay in a six-month period if you had an accident costing $150 to repair. Since you pay a $200 premium every three months, for six months you would pay two premiums totaling $400. In the event of an accident, because the cost of the repair ($150) is less than your deductible ($500), you would pay for the repair out of pocket without the insurance covering any of those costs. Therefore, your total payment over six months would be: Premium payments: $200 + $200 = $400, Repair costs for the accident: $150, Total cost: $400 (premiums) + $150 (repairs) = $550