3
QuizMultiple Choice

Home and Mortgage Insurance — Quiz

Question 3 • Financial Algebra/Mathematics

Idris is comparing car insurance policies to find the best option based on his frequent long-distance travels. Policy C: Annual cost of $⁢900 , covers accidents and theft, $⁢300 deductible, offers roadside assistance Policy D: Annual cost of $⁢750 , covers only accidents, $⁢500 deductible, does not offer roadside assistance Idris values additional support features. Which policy should he choose to best meet his needs?

Answer
A
Policy C, because it includes roadside assistance, which is beneficial for frequent travelers
B
Policy D, because roadside assistance is not essential
C
Policy D, because it is cheaper annually
D
Policy C, because it has a lower deductible

Explanation

Idris travels long distances frequently and values additional support features. Policy C includes roadside assistance, which can be especially helpful during a trip, and it also covers theft and has a lower $300 deductible than Policy D’s $500 deductible. Although Policy C costs $150 more per year, its support features better match Idris’s needs, so he should choose Policy C.

AI-written and checked against the verified answer.

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