expected value insurance claims 
based on an insurance company's past data, each year an average of 1/90 policy holders make a claim of $250, 1/100 policy holders make a claim of $12,000, and 1/400 make a claim of $17,000. 1. what would the insurance company have to charge per policy-holder to break even? (i.e., what the premium would have to be in order to have an expected profit of zero.) ? (round to the nearest dollar.) 2. a vehicle insurance policy sells for $350 annually. what is the expected profit or loss for the company per policy-holder over the course of the year? ? (round to the nearest dollar.) 3. if the company sold 375 policies what would the overall expected profit or loss be? ? (round to the nearest dollar and do not use commas.)
1. the expected pay-out on each policy is 250 * 1/90 + 12000 * 1/100 + 17000 * 1/400 = $165.  so that's what the premium would have to be in order to get a profit of 0.
 
2. the profit per policy is the premium the company receives minus the expected payout = 350 - 165 = $185.
 
3. the expected profit on 375 policies would be 375 * 185 = $69375
"the other insurance company is only offering to pay $15,000 because that is what the other driver's coverage limit is. in a situation like this, typically [uninsured/underinsured motorist coverage](https://getjerry.com/car-insurance/uninsured-motorist-coverage) or [collision coverage](https://getjerry.com/car-insurance/collision-insurance) on your own policy would cover this. 

however, most [car insurance](https://getjerry.com/car-insurance) carriers require that anyone who drives the vehicle be listed on the policy as a driver. while insurance does often follow the car, carriers can deny a claim if a household member, or full-time driver, is not listed on the policy or is excluded from coverage. 

it's extremely important to always list anyone who frequently drives the vehicle. insurance carriers base their rate on this and it will ensure your vehicle is always protected, regardless of who is driving. 
" "yikes! that is a big difference!

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the average homeowner pays about **$1,200 a year**, so you're right in thinking that you're paying a lot. in the future, you can safeguard your house against leaks or choose to pay for them out-of-pocket rather than adding to your claims history." 

**more**: [11 car insurance hacks to save you money](https://getjerry.com/car-insurance/car-insurance-hacks) "insurance companies view older, new drivers just as high risk as younger, new drivers. the reason why older drivers have better rates is typically because they've been driving longer. 
 
older drivers are often able to prove to insurance companies that they're reliable. a new driver hasn't had that experience, so insurance companies are taking on more risk by insuring them.
 
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while your rates may be high to begin with, your rates should begin to decrease if you maintain insurance and a clean driving record." "when you don't pay your [car insurance](https://getjerry.com/car-insurance) bill, your coverage can be canceled. without insurance, you won't be covered in the event of an accident. this means that you would be responsible for any damages or injuries you cause.
 
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with [jerry](https://getjerry.com/signup), you can get quotes from up to 45 providers in seconds, making the entire process quick and easy. good luck on your new life as an independent woman!" "the vehicle identification number (vin) is how [car insurance companies](https://getjerry.com/car-insurance) determine trim level, and sometimes their systems aren't updated with the latest trim levels. however, most of the time they are so close that it **will not make a significant difference in the premium or claim payout.** 

to be on the safe side, let [state farm](https://getjerry.com/car-insurance/state-farm-car-insurance-quote) know about the problem and have the claim re-evaluated. if they ask for proof, you can send them a copy of the registration or a picture of the vin on the car. 

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**more**: [11 car insurance hacks to save you money](https://getjerry.com/car-insurance/car-insurance-hacks) "in most cases, when a [car insurance company](https://getjerry.com/car-insurance) makes a medical settlement, they will send the check directly to the *victim*, even if they make it payable to the hospital or medical provider as well. 

it's up to you to make sure you use this money to cover your medical expenses. once a claim has been settled, your insurer won't make additional payments. 

if you want additional medical support, consider adding [medpay](https://getjerry.com/car-insurance/medical-payments-coverage-medpay) (medical payments coverage) to your policy." 

**more**: [types of insurance](https://getjerry.com/car-insurance/types-of-car-insurance) my rule of thumb is ideally >20% (the higher the better), though there are exceptions if you're about to price yourself out of the market or there are other benefits to working at the new firm (e.g. employee benefits are better, the work is not fulfilling, better client alignment, etc). i wouldn't accept a pay cut, though. if you have hired help, it is crucial to talk with your agent about what you are and are not covered for. this can be different in every state and every situation. 

for example, if the babysitter you get from time to time is hurt on your property, your policy will cover this. however, if you directly employ a full-time nanny, they may not be covered since in some states, you would be required to provide workers’ compensation insurance. 

also, there can be a difference depending on whether you directly hire someone or if they are part of an agency that you contract through. usually, if your employee is part of an agency, they will already have insurance with that company. 

as you can see, there are a lot of potential scenarios to consider, and it would be best to speak with your insurance agent. this is a situation where most people are not adequately protected. * Ex-showroom Price : Rs. 6,29,556
* RTO Tax : Rs. 37,773
* Insurance : Rs. 18,018
* On Road Price : Rs. 6,85,347