The accident caused $2,700 worth of damage to your car. You have liability coverage of 60/125/45 which costs you $286 per year. The book value of your car is $2,000. The annual cost for collision coverage is $226 with a $1500 deductible. 10. What is the cost per $1,000 per liability coverage?

Question

Daniella Vaughan

Business

9 January, 15:30

The accident caused $2,700 worth of damage to your car. You have liability coverage of 60/125/45 which costs you $286 per year. The book value of your car is $2,000. The annual cost for collision coverage is $226 with a $1500 deductible. 10. What is the cost per $1,000 per liability coverage?

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Answers (1)

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Belinda Sellers · Answer 1

The cost is $1.68 per $1000 per liability coverage

Explanation:

In order to calculate the Cost per $1000 per liability coverage, according to the data we have, we would have to use the following formula:

Cost per $1000 per liability coverage = Annual liability coverage cost / (Maximum body injury coverage + Maximum property coverage coverage)

= [$286 / ($125 + $45) ]

= ($286 / $170)

=$1.68

Hence, the cost is $1.68 per $1000 per liability coverage.