Questions: What is the cost per thousand for auto liability insurance of 150 / 450 / 100 with a monthly premium of 70?

Transcript text: What is the cost per thousand for auto liability insurance of $150 / 450 / 100$ with a monthly premium of $\$ 70$ ?

Solution

Solution Steps

To find the cost per thousand for auto liability insurance, we need to calculate the total coverage amount by summing up the given coverage values. Then, we divide the monthly premium by the total coverage amount (in thousands) to find the cost per thousand.

Step 1: Calculate Total Coverage

The total coverage amount is calculated by summing the individual coverage values: \[ \text{Total Coverage} = 150 + 450 + 100 = 700 \text{ (thousands)} \]

Step 2: Calculate Cost per Thousand

The cost per thousand is determined by dividing the monthly premium by the total coverage: \[ \text{Cost per Thousand} = \frac{70}{700} = 0.1 \]