Photo AI
Kevin purchased comprehensive insurance, with a policy excess of €500 - Junior Cycle Business Studies - Question v - 2022
Question v
Kevin purchased comprehensive insurance, with a policy excess of €500. Unfortunately, Kevin had an accident, which led to damage of €2,500 to his car. Use the box b... show full transcript
Worked Solution & Example Answer:Kevin purchased comprehensive insurance, with a policy excess of €500 - Junior Cycle Business Studies - Question v - 2022
Step 1
Use the box below to calculate how much compensation Kevin will receive from his insurance company. Show your workings.
Answer
To calculate the compensation Kevin will receive, we start with the total damage amount and deduct the policy excess:
- Total damage to the car: €2,500
- Insurance excess: €500
Now, we perform the calculation:
Thus, the compensation that Kevin will receive from his insurance company is €2,000.
Step 2
Describe the impact this claim will have on Kevin’s insurance premium next year.
Answer
Kevin will likely have to pay more for his car insurance next year. This is due to the claim he made, which will usually result in a higher or increased premium. Additionally, Kevin will lose any no claims discount or bonus he may have had, further increasing his premium costs.