Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered “full” coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?Fret-No-More Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/50,000$21.35 $50/100,000$32.78 $100/300,000$42.10 Property Damage$25,000 $115.50 $50,000 $142.44 $100,000 $193.78 Collision$100 deductible$490.25 $250 deductible$343.33 $500 deductible$248.08 Comprehensive$50 deductible$105.79 $100 deductible$88.23
Choose the highest coverage limits: bodily injury coverage of $100/300,000 costs $42.10, and property damage coverage of $100,000 costs $193.78. The lowest deductibles are $100 for collision coverage ($490.25) and $50 for comprehensive coverage ($105.79). Adding the four annual premiums gives $42.10 + $193.78 + $490.25 + $105.79 = $831.92, so the full-coverage plan costs $831.92 per year.
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