Question 32 • ****Spring 2026 Financial Math - MA2007 MQS21QXV
Jerry is currently insured through AA Auto Insurance, but would like to lower his auto insurance premium by at least $10 per month. His current insurance plan includes the $50/100,000 limit for bodily injury, $100,000 limit for property damage, a $250 deductible for collision, and a $50 deductible for comprehensive. Which of the following adjustments would allow Jerry to meet his goal?AA Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/$50,000$22.50 $50/100,000$31.75 $100/300,000$40.25 Property Damage$25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision$100 deductible$520.00 $250 deductible$415.25 $500 deductible$275.75 Comprehensive$50 deductible$110.25 $100 deductible$100.00
Answer
A
Reduce bodily injury limits to $25/50,000.
B
Reduce property damage to $25,000.
C
Increase collision deductible to $500.
D
Increase comprehensive deductible to $100.
Explanation
Increasing the collision deductible from $250 to $500 lowers the annual premium from $415.25 to $275.75, a savings of $139.50 per year. Dividing by 12 gives about $11.63 per month, which meets Jerry’s goal of saving at least $10 monthly. The other adjustments save less than $120 per year.
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