briyanuhh3378 briyanuhh3378
  • 19-02-2020
  • Business
contestada

Veronica is a 17 year old with an annual base premium of $928. What is the cost of her policy if her rating factor is 1.85?

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jepessoa
jepessoa jepessoa
  • 22-02-2020

Answer:

$1,716.80

Explanation:

Veronica's premium = annual base premium x rating factor = $928 x 1.85 = $1,716.80

The rating factor is used by car insurance companies to assign an individual customer risk. The less risky a customer is ⇒ the lower the rating factor ⇒ the cheaper your insurance premium is.

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