In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

Question

Business

Trystan Fowler

16 February, 17:46

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

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Answers (2)

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Gustavo Jarvis · Answer 1

Gustavo Jarvis 16 February, 19:44

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The correct answer is $12.48 or a

Kareem Knapp · Answer 2

Since Henry decided to increase the deductible on his existing insurance policy, his monthly auto insurance premium will be lower. This means that higher deductible means lower premium payments. It also affects the insurance coverage of Henry because this mean that Henry must shoulder a specific amount (or high cash-out) before the claim is paid by the insurance company.