Let's determine the best insurance policy for Raul by analyzing the total yearly costs of each policy. The total yearly cost of any policy includes collision coverage, comprehensive coverage, roadside assistance, and additional costs based on penalties for traffic tickets and previous accidents.
Here are the details for each policy:
### Policy A
- Collision Coverage: \[tex]$583
- Comprehensive Coverage: \$[/tex]99
- Traffic Ticket Penalty: 23%
- Previous Accident Penalty: 72%
- Roadside Assistance: \[tex]$42
Total cost calculation:
1. Sum of collision and comprehensive coverage: \$[/tex]583 + \[tex]$99 = \$[/tex]682
2. Sum of penalties: 23% + 72% = 95% (or 0.95)
3. Penalty cost: \[tex]$682 × 0.95 = \$[/tex]647.9
4. Total cost for Policy A: \[tex]$682 + \$[/tex]647.9 + \[tex]$42 = \$[/tex]1371.9
### Policy B
- Collision Coverage: \[tex]$642
- Comprehensive Coverage: \$[/tex]156
- Traffic Ticket Penalty: 17%
- Previous Accident Penalty: 29%
- Roadside Assistance: \[tex]$25
Total cost calculation:
1. Sum of collision and comprehensive coverage: \$[/tex]642 + \[tex]$156 = \$[/tex]798
2. Sum of penalties: 17% + 29% = 46% (or 0.46)
3. Penalty cost: \[tex]$798 × 0.46 = \$[/tex]367.08
4. Total cost for Policy B: \[tex]$798 + \$[/tex]367.08 + \[tex]$25 = \$[/tex]1190.08
### Policy C
- Collision Coverage: \[tex]$675
- Comprehensive Coverage: \$[/tex]137
- Traffic Ticket Penalty: 12%
- Previous Accident Penalty: 56%
- Roadside Assistance: \[tex]$76
Total cost calculation:
1. Sum of collision and comprehensive coverage: \$[/tex]675 + \[tex]$137 = \$[/tex]812
2. Sum of penalties: 12% + 56% = 68% (or 0.68)
3. Penalty cost: \[tex]$812 × 0.68 = \$[/tex]552.16
4. Total cost for Policy C: \[tex]$812 + \$[/tex]552.16 + \[tex]$76 = \$[/tex]1440.16
### Policy D
- Collision Coverage: \[tex]$325
- Comprehensive Coverage: \$[/tex]120
- Traffic Ticket Penalty: 13%
- Previous Accident Penalty: 30%
- Roadside Assistance: \[tex]$33
Total cost calculation:
1. Sum of collision and comprehensive coverage: \$[/tex]325 + \[tex]$120 = \$[/tex]445
2. Sum of penalties: 13% + 30% = 43% (or 0.43)
3. Penalty cost: \[tex]$445 × 0.43 = \$[/tex]191.35
4. Total cost for Policy D: \[tex]$445 + \$[/tex]191.35 + \[tex]$33 = \$[/tex]669.35
### Comparison of Policies:
- Policy A: \[tex]$1371.9
- Policy B: \$[/tex]1190.08
- Policy C: \[tex]$1440.16
- Policy D: \$[/tex]669.35
From these calculations, the total yearly costs are:
1. Policy A: \[tex]$1371.9
2. Policy B: \$[/tex]1190.08
3. Policy C: \[tex]$1440.16
4. Policy D: \$[/tex]669.35
The policy with the minimum total yearly cost is Policy D with a total cost of \$669.35. Therefore, Policy D is the best option for Raul to get maximum coverage at the lowest cost.
So, the correct answer is:
Policy D is the best option
