Question
1 Abigail has been quoted \( \$ 1260 \) for Comprehensive car insurance. If she is eligible for a \( 60 \% \) no-claim bonus, how much will she pay for the policy? (1) \( \$ 504 \) (1B) \( \$ 720 \) (C) \( \$ 756 \) (1) \( \$ 1200 \)
Ask by Ray Bowman. in Iran
Jan 11,2025
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Tutor-Verified Answer
Answer
Abigail will pay \$504 for her car insurance policy.
Solution
To determine how much Abigail will pay for her comprehensive car insurance policy after applying the 60% no-claim bonus, follow these steps:
1. **Original Premium:** \$1260
2. **No-Claim Bonus Calculation:**
- **Percentage Discount:** 60%
- **Discount Amount:** \( 60\% \times \$1260 = 0.60 \times \$1260 = \$756 \)
3. **Final Premium After Discount:**
- **Amount to Pay:** \( \$1260 - \$756 = \$504 \)
**Therefore, Abigail will pay \$504 for her car insurance policy.**
**Answer:** \( \$504 \)
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution Beyond the Answer
Abigail's no-claim bonus means she'll receive a discount based on her initial quote. To calculate the bonus amount, take \( 60\% \) of \( \$ 1260 \): that's \( 0.6 \times 1260 = \$ 756 \). To find what she’ll pay, subtract that amount from her original quote: \( 1260 - 756 = \$ 504 \). So, Abigail will pay \( \$ 504 \) for her comprehensive car insurance. This type of insurance can have a substantial impact on your finances, especially if you are a safe driver. Many insurers also offer additional discounts for adding safety features to your vehicle or taking advanced driving courses, so it’s a good idea for anyone seeking car insurance to ask about potential savings!
