Q21 Darragh is comparing two motor insurance policies from the same company. Policy A
Annual premium Policy excess
€880 €150
Policy B €700 €600
Darragh chooses Policy B. He then has an accident causing €1,000 worth of damage to his car.
(i) Calculate how much the insurance company will pay out. Show your workings. Workings
Answer €
(ii) Using the information above, explain why Policy B may charge a lower annual premium than Policy A.
(iii) Give one reason why Policy A might have been the better choice for Darragh.
Reducing the Cost of Your Insurance
Q22 Sorcha wants to find the best quote for her travel insurance. Outline one method of research Sorcha could use to find the best quote for her insurance policy.
Q23 Identify two things Sorcha could do to lower the cost of her house insurance.