# Sharon bought 100/300/100 policy with a $100 deductible on collision and $100 deductible on comprehensive coverage. If the base premiums are $450, $375, $215, and $129, respectively, how much is his total base premium if her rating factor is 1.65? $1,169.00 $1,823.64 $1,928.85 $1,982.58

Mathematics · Middle School · Thu Feb 04 2021

Answered on

To calculate Sharon's total base premium, we first need to understand what the numbers mean and add them up accordingly.

The policy 100/300/100 represents the liability coverage limits in thousands of dollars. This means:

- $100,000 for bodily injury per person - $300,000 for bodily injury per accident - $100,000 for property damage per accident

However, these numbers are not directly related to the cost calculation.

Sharon has four base premiums given for different coverages, and these are:

- Base premium 1: $450 - Base premium 2: $375 - Base premium 3: $215 - Base premium 4: $129

To calculate the total base premium before the rating factor is applied, add up these amounts:

$450 + $375 + $215 + $129 = $1,169

Now to account for Sharon's rating factor, which is 1.65, we multiply the total base premium by this factor:

Total base premium with rating factor = $1,169 * 1.65

Let's do the math:

Total base premium with rating factor = $1,169 * 1.65 = $1,928.85

So Sharon's total base premium with her rating factor of 1.65 would be $1,928.85.

Answered on

To calculate Sharon's total base premium, first we need to understand what the numbers in the 100/300/100 policy mean:

The first number (100) refers to the maximum payment of $100,000 for bodily injury per person.

The second number (300) refers to the maximum payment of $300,000 for bodily injury per accident. The third number (100) refers to the maximum payment of $100,000 for property damage per accident.

These represent the limits of liability coverage. The deductible amounts for collision and comprehensive coverages are the portion of the claim that Sharon would pay out of pocket.

The base premiums listed are for different components of the insurance policy.

To find the total base premium, we add them together:

Liability Bodily Injury (per person) = $450

Liability Bodily Injury (per accident) = $375

Property Damage = $215 - Collision and Comprehensive = $129

Total Base Premium = $450 + $375 + $215 + $129

Total Base Premium = $1169

Next, to get the final premium, we need to apply Sharon's rating factor of 1.65 to the total base premium:

Final Premium = Total Base Premium x Rating Factor Final Premium

Final Premium = $1169 x 1.65

Final Premium = $1928.85

Therefore, Sharon's total base premium, after applying her rating factor, would be $1,928.85.