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Homework Help personal finance?
1 Jun 2010What is the annual premium of Katy’s car insurance if the base premium is $250.25 and the rating factor is 2.35?
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1 Response to Homework Help personal finance?
northridgeville
June 1st, 2010 at 8:06 pm
base premium * rating factor = annual premium
$250.25 * 2.35 = annual premium
Quite simply, an insurance rate considers all these factors and the insurance company assigns you a rating factor by which they multiply the base rate for each type of coverage. For example, a given insurance group may be priced at $200 per year for someone in a 35-40 year old age group, but if you are 16-21 your rating factor may be 1.5, you will be charged $300 ($200 X 1.5).