David is 22 years old. He buys 100/300/50 liability insurance, collision insurance with a \[tex]$100 deductible, and comprehensive insurance with a \$[/tex]500 deductible.

What is his total annual premium?

Liability Insurance
\begin{tabular}{|c|c|c|}
\hline Type & Amount & Premium \\
\hline Bodily Injury & 25/50 & \[tex]$220 \\
& 50/100 & \$[/tex]310 \\
& 100/300 & \[tex]$450 \\
\hline Property Damage & 25 & \$[/tex]175 \\
& 50 & \[tex]$245 \\
& 100 & \$[/tex]375 \\
\hline
\end{tabular}

Collision & Comprehensive Premiums
\begin{tabular}{|c|c|c|}
\hline Deductible & Collision & Comprehensive \\
\hline \[tex]$100 & \$[/tex]215 & \[tex]$129 \\
\hline \$[/tex]250 & \[tex]$185 & \$[/tex]102 \\
\hline \[tex]$500 & \$[/tex]148 & \$85 \\
\hline
\end{tabular}

Rating Factor
\begin{tabular}{|c|c|c|}
\hline Age & Male & Female \\
\hline 17-20 & 3.0 & 1.45 \\
\hline 21-24 & 2.15 & 1.2 \\
\hline 25-29 & 1.55 & 1.0 \\
\hline
\end{tabular}



Answer :

To determine David's total annual premium, we need to add up the premiums for each type of insurance he has chosen.

1. Bodily Injury Premium
- David has selected 100/300 liability insurance.
- The premium for 100/300 bodily injury liability insurance is \[tex]$450. 2. Property Damage Premium - David has chosen a property damage liability amount of 100. - The premium for 100 property damage liability is \$[/tex]375.

3. Collision Premium
- David’s collision insurance has a \[tex]$100 deductible. - The premium for collision insurance with a \$[/tex]100 deductible is \[tex]$215. 4. Comprehensive Premium - David’s comprehensive insurance has a \$[/tex]500 deductible.
- The premium for comprehensive insurance with a \[tex]$500 deductible is \$[/tex]85.

By summing these individual premiums, we find the total annual premium. Adding them up step by step:

- [tex]\( \$450 \)[/tex] (Bodily Injury Premium)
- [tex]\( + \$375 \)[/tex] (Property Damage Premium)
- [tex]\( + \$215 \)[/tex] (Collision Premium)
- [tex]\( + \$85 \)[/tex] (Comprehensive Premium)

Therefore, the total annual premium is:

[tex]\[ \$450 + \$375 + \$215 + \$85 = \$1125 \][/tex]

Thus, David’s total annual premium is \$1125.

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