The annual insurance premium for a car Nicole bought 6 months ago is $756.00 with a $500 deductible for collision. Nicole had just paid the bill for her sixth month of insurance before she was involved in a car accident resulting in $2,000 in damage to her car. Because she had collision insurance in her policy, the insurance company took care of all of the repairs less the $500.00 deductible. Considering how much she paid in insurance premiums and deductibles, would you say the purchase of insurance over the last 6 months was a good investment for Nicole? Why or why not?
Answer
Answer:
Yes. Nicole paid $878 in premiums and deductible, while the insurance company covered $1,500 of the $2,000 repair cost. Therefore, the insurance saved her $622 compared with paying the full repair cost herself, making it a good investment over the six months.

Question

The annual insurance premium for a car Nicole bought 6 months ago is $756.00 with a $500 deductible for collision. Nicole had just paid the bill for her sixth month of insurance before she was involved in a car accident resulting in $2,000 in damage to her car. Because she had collision insurance in her policy, the insurance company took care of all of the repairs less the $500.00 deductible. Considering how much she paid in insurance premiums and deductibles, would you say the purchase of insurance over the last 6 months was a good investment for Nicole? Why or why not?

Answer

Answer:

Yes. Nicole paid $878 in premiums and deductible, while the insurance company covered $1,500 of the $2,000 repair cost. Therefore, the insurance saved her $622 compared with paying the full repair cost herself, making it a good investment over the six months.

Revolt · Accepted Answer

Yes. Nicole paid $878 in premiums and deductible, while the insurance company covered $1,500 of the $2,000 repair cost. Therefore, the insurance saved her $622 compared with paying the full repair cost herself, making it a good investment over the six months.

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