• The limits and deductibles you choose. Higher limits mean an increase in coverage costs, and higher deductibles mean a decrease in premium costs. Let’s take a look at these factors in a closer-to-real-life situation. We’ll use two imaginary families: the Smiths and the Joneses. Each family has two parents who are all the same age and a 17-year-old who drives. All the parents work. They live next door to each other in a typical suburb, and each family has three cars. Their state has a law against charging one gender more than the other. Seems like they should have roughly the same insurance, right? Wrong. (Although you probably knew that since you’ve been reading this book.) Check out the chart below. The bolded items mean that the item tends to cost more*.
THE SMITHS
Parent 1’s commute: 45 minutes
Parent 2’s commute: 0 minutes (works from home); however, parent 2 drives a lot for work.
Teen driver: Good student, gets good student discount
Car makes and models:
Parent 1: 2019 Toyota Prius
Parent 2: 2016 Subaru Outback
Teen: 2017 Honda Civic
Parking: Parents park in a two-car garage, teen parks in the
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