Question

insurance premium adjustments by driver profile and vehicle type
the table details how various factors affect insurance premiums, listing both increases and decreases in rates for risk - related adjustments.

factor rate	adjustment
age under 30	+$200
each minor accident	+$150
high - end car	+$200
regular car	no adjustment
rural area	-$100
urban area	+$50
defensive driving course	-$50
each speeding ticket	+$100
bundling car and home insurance	-$50

karina, a 32 - year - old individual with two minor accidents on record, drives a high - end car in a rural area.
what would be her annual premium?
$1,300
$1,200
$1,500
$1,450

Explanation:

Step1: Identify applicable factors

Karina is 32 (not under 30, so no age adjustment), 2 minor accidents, high - end car, rural area. Base rate: $800.

Step2: Calculate accident adjustment

2 minor accidents: \(2\times150 = 300\)

Step3: Calculate car adjustment

High - end car: \(+200\)

Step4: Calculate area adjustment

Rural area: \(-100\)

Step5: Sum all adjustments

Total = \(800+300 + 200-100=1200\)? Wait, no, wait: Wait, base rate is 800. Accidents: 2150 = 300. High - end car: +200. Rural: - 100. So 800+300 = 1100; 1100+200 = 1300; 1300 - 100 = 1200? Wait, no, maybe I made a mistake. Wait, base rate is 800. Then, two minor accidents: each is +150, so 2150 = 300. High - end car: +200. Rural area: - 100. So 800+300+200 - 100=1200? Wait, but let's recalculate: 800 (base) + 2*150 (accidents) + 200 (high - end) - 100 (rural) = 800+300+200 - 100 = 1200. Wait, but maybe I missed something. Wait, age: she is 32, so age under 30 is not applicable, so no +200. So yes, 800+300+200 - 100 = 1200. Wait, but the options have 1200 as one of them. Wait, but let's check again:

Base rate: $800

Minor accidents: 2 * $150 = $300

High - end car: +$200

Rural area: -$100

So total: 800+300 + 200-100 = 1200.

Answer:

\$1,200