21
QuizMultiple Choice

Mobilization on the Home Front

Question 21 • TX-Art I A

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options?Bodily Injury: $25/50,000Property Damage: $25,000Collision: $250 deductibleComprehensive: $100 deductibleAA Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/$50,000$22.50 $50/100,000$31.75 $100/300,000$40.25 Property Damage$25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision$100 deductible$520.00 $250 deductible$415.25 $500 deductible$275.75 Comprehensive$50 deductible$110.25 $100 deductible$100.00

Answer
A
$43.23
B
$46.10
C
$54.85
D
$64.44

Explanation

Add the annual premiums for the selected coverage: $22.50 for bodily injury, $120.50 for property damage, $415.25 for the $250 collision deductible, and $100.00 for the $100 comprehensive deductible. The total is $658.25 per year. Divide by 12 to get about $54.85 per month, so the correct choice is $54.85.

AI-written and checked against the verified answer.

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