amy miller's insurance policy has a $218.00 premium for 25/100 bodily injury limits and $25,000.00 property damage limits. the collision premium is $74.00. amy's driving-rating factor is 2.4. what is her annual premium?
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To calculate Amy Miller's annual premium, we need to consider the premium for bodily injury limits, property damage limits, and collision coverage.
1. Bodily Injury Premium:
The premium for bodily injury limits is given as $218.00 for 25/100 limits. The 25/100 limits represent $25,000 per person injured and $100,000 per accident. Since Amy's driving-rating factor is 2.4, the premium calculation will be:
Premium for bodily injury = ($25,000 per person * 2.4) + ($100,000 per accident * 2.4)
= $60,000 + $240,000
= $300,000
2. Property Damage Premium:
The premium for property damage limits is $25,000. Amy's driving-rating factor does not affect the property damage premium. So the premium for property damage remains the same.
3. Collision Premium:
The collision premium is given as $74.00.
Now, let's calculate the total annual premium:
Total annual premium = Bodily Injury Premium + Property Damage Premium + Collision Premium
= $300,000 + $25,000 + $74.00
= $325,074.00
Therefore, Amy Miller's annual premium is $325,074.00.
To calculate Amy Miller's annual premium, we need to consider both her liability policy premium and her collision policy premium. Let's break it down step by step:
1. Liability Policy:
Amy Miller's liability policy premium is determined based on her bodily injury limits and property damage limits, as well as her driving-rating factor.
a. For bodily injury limits of 25/100, the premium is calculated per $1000 of coverage. So, the premium for bodily injury coverage would be:
(25/100) * $218.00 = $54.50
b. For property damage limits of $25,000, the premium is calculated per $100 of coverage. So, the premium for property damage coverage would be:
(25/100) * $25,000.00 = $6,250.00
c. Now, we multiply the premiums obtained in steps a and b by Amy's driving-rating factor of 2.4:
Bodily Injury Premium = $54.50 * 2.4 = $130.80
Property Damage Premium = $6,250.00 * 2.4 = $15,000.00
2. Collision Policy:
Amy Miller's collision policy premium is given as $74.00.
3. Adding the premiums:
Annual Premium = Liability Premium + Collision Premium
Annual Premium = $130.80 + $15,000.00 + $74.00
Annual Premium = $15,204.80
Therefore, Amy Miller's annual premium is $15,204.80.