How does the value of her car influence this decision

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Reference no: EM131382046

Deductible. A car owner may buy insurance that will pay the full price of repairing the car after an at-fault accident, or save $12 a year by getting a policy with a $500 deductible. Her insurance company says that about 0.5% of drivers in her area have an at-fault auto accident during any given year. Based on this information, should she buy the policy with the deductible or not? How does the value of her car influence this decision?

Reference no: EM131382046

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