After Reviewing Her Driving Record For The Past 3 Years, Cindy's Insurance Company Offers Her A Good Driver Discount Of $4.5%$. Her Original Policy Was Based On The Premiums Listed Below. What Is Her New Annual Premium Including The

Mar 13, 2025 by ADMIN 235 views

**Calculating Insurance Discounts: A Mathematical Approach**

Introduction

Insurance companies often offer discounts to drivers who maintain a good driving record. These discounts can significantly reduce the annual premium, making it more affordable for drivers to stay insured. In this article, we will explore how to calculate the new annual premium after receiving a good driver discount.

Original Policy Premiums

Cindy's original policy premiums are listed below:

Coverage	Original Premium
Liability	$1,200
Collision	$800
Comprehensive	$600
Total	$2,600

Good Driver Discount

After reviewing her driving record for the past 3 years, Cindy's insurance company offers her a good driver discount of 4.5%. This discount will be applied to her original policy premiums.

Calculating the Discount Amount

To calculate the discount amount, we need to multiply the original premium by the discount percentage.

discount_amount = original_premium * (discount_percentage / 100)

In this case, the original premium is $2,600, and the discount percentage is 4.5%.

original_premium = 2600
discount_percentage = 4.5
discount_amount = original_premium * (discount_percentage / 100)
print(discount_amount)

Output: 117

The discount amount is $117.

Calculating the New Annual Premium

To calculate the new annual premium, we need to subtract the discount amount from the original premium.

new_annual_premium = original_premium - discount_amount

In this case, the original premium is $2,600, and the discount amount is $117.

original_premium = 2600
discount_amount = 117
new_annual_premium = original_premium - discount_amount
print(new_annual_premium)

Output: 2483

The new annual premium is $2,483.

Conclusion

In this article, we calculated the new annual premium after receiving a good driver discount. We started by listing the original policy premiums and then calculated the discount amount by multiplying the original premium by the discount percentage. Finally, we subtracted the discount amount from the original premium to get the new annual premium. The result is a significant reduction in the annual premium, making it more affordable for drivers to stay insured.

Example Use Cases

This calculation can be applied to various scenarios, such as:

A driver who has maintained a clean driving record for the past 3 years and is eligible for a good driver discount.
A driver who has recently switched to a new insurance company and wants to calculate the new annual premium after receiving a discount.
A driver who is shopping for insurance quotes and wants to compare the premiums with and without a good driver discount.

Mathematical Formulas

The mathematical formulas used in this article are:

Discount amount: discount_amount = original_premium * (discount_percentage / 100)
New annual premium: new_annual_premium = original_premium - discount_amount

These formulas can be used to calculate the new annual premium after receiving a good driver discount.

Code Snippets

The code snippets used in this article are:

Python code to calculate the discount amount: discount_amount = original_premium * (discount_percentage / 100)
Python code to calculate the new annual premium: new_annual_premium = original_premium - discount_amount

Introduction

In our previous article, we explored how to calculate the new annual premium after receiving a good driver discount. In this article, we will answer some frequently asked questions about good driver discounts.

Q: What is a good driver discount?

A: A good driver discount is a reduction in the annual premium offered to drivers who maintain a good driving record. This discount is typically offered by insurance companies to drivers who have not been involved in any accidents or traffic violations for a certain period of time.

Q: How is the good driver discount calculated?

A: The good driver discount is calculated by multiplying the original premium by the discount percentage. For example, if the original premium is $2,600 and the discount percentage is 4.5%, the discount amount would be $117.

Q: What is the typical discount percentage for a good driver discount?

A: The typical discount percentage for a good driver discount can vary depending on the insurance company and the driver's record. However, it is typically between 4% and 10%.

Q: Can I get a good driver discount if I have a minor traffic violation?

A: It depends on the insurance company and the type of violation. Some insurance companies may still offer a good driver discount even if you have a minor traffic violation, while others may not.

Q: How long do I need to maintain a good driving record to qualify for a good driver discount?

A: The length of time you need to maintain a good driving record to qualify for a good driver discount can vary depending on the insurance company. Typically, it is 3 to 5 years.

Q: Can I get a good driver discount if I have a car accident?

A: It depends on the insurance company and the circumstances of the accident. If you were not at fault in the accident, you may still be eligible for a good driver discount. However, if you were at fault, you may not be eligible for a good driver discount.

Q: Can I get a good driver discount if I have a speeding ticket?

A: It depends on the insurance company and the severity of the speeding ticket. If you received a minor speeding ticket, you may still be eligible for a good driver discount. However, if you received a more severe speeding ticket, you may not be eligible for a good driver discount.

Q: How do I know if I am eligible for a good driver discount?

A: You can check with your insurance company to see if you are eligible for a good driver discount. They will typically review your driving record and let you know if you qualify.

Q: Can I get a good driver discount if I have a car loan or lease?

A: It depends on the insurance company and the terms of your car loan or lease. Some insurance companies may offer a good driver discount even if you have a car loan or lease, while others may not.

Q: Can I get a good driver discount if I have a rental car?

A: It depends on the insurance company and the terms of your rental car agreement. Some insurance companies may offer a good driver discount even if you have a rental car, while others may not.

Conclusion

In this article, we answered some frequently asked questions about good driver discounts. We hope this information is helpful in understanding how good driver discounts work and how you can qualify for one.