Answer Happy

The Flamingo Cab Company of Cougar Creek is interested in purchasing $250 deductible collision insurance and full-coverage comprehensive insurance to cover its fleet of 10 taxicabs. As a requirement for the job, all drivers already carry their own liability coverage in the amount of 100/300/100. Cougar Creek is rated as territory 2. Five of the cabs are 4-year-old Checker Towncars, model class Y. Three of them are 2-year-old Chrysler station wagons, model class R. The remaining two are new Buick sedans, model class C. Because the vehicles are on the road almost 24 hours a day, they are considered to be very high risk and carry a rating factor of 5.4. They are, however, subject to an 16% multi-vehicle fleet discount. (a) As the insurance agent for Flamingo Cabs, use Table 19-7 to calculate the total annual premium (in $) for the fleet. $ (b) When the owner saw your rate quote, he exclaimed, "Too expensive! How can I save some money on this insurance?" At that point, you suggested changing the coverage to $500 deductible collision and $100 deductible comprehensive. Using Table 19-7, how much can you save (in $) Flamingo by using the new coverage? (Round your answer to the nearest cent.) $
TABLE 19-7 Motor Vehicle Insurance Annual Premiums-Collision and Comprehensive Rates Territories 1 and 2 Collision Comprehensive Collision Model Vehicle $250 $500 Full $100 $250 Class Age Deductible Deductible Coverage Deductible Deductible A-G 0-1 $89 $81 $63 $59 $95 2-3 87 79 60 57 93 4-5 86 77 58 54 89 6+ 84 76 55 50 86 H-L 0-1 96 92 78 71 104 2-3 93 89 76 68 101 4-5 89 85 74 66 96 6+ 86 81 70 64 92 M-R 0-1 108 104 86 83 112 2-3 104 101 83 79 109 4-5 100 98 79 75 104 6+ 94 90 75 71 100 S-Z 0-1 120 115 111 108 124 2-3 116 112 106 104 121 4-5 111 107 101 99 116 6+ 108 103 96 111 98 Territories 3 and 4 $500 Deductible $88 84 81 78 95 90 87 84 106 104 101 96 116 114 110 107 Comprehensive Full Coverage $67 63 60 57 83 80 78 74 91 88 84 80 119 115 111 108 $100 Deductible $61 58 57 52 75 72 68 66 88 82 77 74 113 109 106 101