Question by Phoenix Scarlett: Answers to Personal Finance Question?
As Rachel was leaving her apartment one morning, she saw that someone had broken into her car. One of the windows had been smashed in, and a camera she had left on the passenger seat was gone. She called her dad to find out what to do.
“The first thing you’ve got to do is call the insurance agent,” he said. “Your auto insurance will cover the broken window and anything else they might have messed up on the car. But, did you ever call him and sign up for that renters’ insurance we talked about last month?”Â
“No,” Rachel said reluctantly, “I haven’t gotten around to doing that yet.”Â
“Then you’re probably out of luck on the camera. Your auto insurance covers only the car itselfâ€"it doesn’t cover anything you leave in it. That is usually covered by your renters’ insurance,” he said.
“I can’t afford a new camera right now!” she said.
“Unfortunately, there’s nothing I can do about that. But while you’re filing a claim about the car, ask for a renters’ insurance application and fill it out. That way, if this ever happens again, you’ll be covered,” he said.
“OK, OK, I’ll do it. Thanks, Dad,” Rachel said, before hanging up.
Rachel is not only missing her camera, but she now has to report a theft to her insurance company!
Open a blank document in Word or another program and answer the questions below:
1. Rachel’s deductible is $ 200. If the broken window repair comes to $ 190, and the camera value comes to $ 60, should Rachel report the incident to her insurance company? Why, or why not? (3 points)
2. It turns out that the window repair will cost $ 430. Ouch! Rachel’s deductible is $ 200. but Rachel’s premiums are going to increase $ 6 per month now that she has had a claim of auto theft. Do you think she should report the incident? Why, or why not? (3 points)
3. Describe four (4) strategies would you recommend to Rachel to bring down her insurance costs. (4 points)
Best answer:
Answer by Rikola
i love rachel…,… and you better do your own homework
Know better? Leave your own answer in the comments!
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