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.
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.