Finn Lucez wants to take out fully comprehensive insurance on his car. The car is valued at €10,000 and is fitted with an alarm. Finn has a provisional licence. He has one year’s no claims bonus.
He received the following information from Vroom Insurances Ltd.
• The basic premium is €25 for every €1,000 of value. • Comprehensive cover is €150 extra. • There is a loading of 50% for drivers on a provisional licence. • There is a 5% discount for cars fitted with an alarm. • No claims bonus: there is a 10% discount per year up to a maximum of five years.
Less no claims bonus No claims bonus (1 year × 10% of 498.75)
Yearly premium 49.88 448.87 A
Go to page 78 of your Activities and Accounts Book to practise calculating premiums. Calculating premiums
MAKING A CLAIM
When a person suffers a loss they are insured for, they can make a claim for the money owed to them by the insurance company. A claim is made by filling out a claim form. This form requires information about:
• The policy holder • The loss (when and where it took place) • The value being claimed.
