They currently have auto insurance on their two cars. Each insurance policy has a $1,000 deductible and specifies limits of 100/200/20 ($100,000 per person injured in an accident, $200,000 for all people combined, and $20,000 to cover other damage to the car or to other property). Dave and Sharon live in a no-fault state.

Their homeowner's insurance covers the market value of their home and has a deductible of $10,000. Their policy does not cover floods, which periodically occur in their area. Their house has never been flooded, though, so Dave and Sharon are not concerned.

1.Advise the Sampsons regarding their car insurance. Do they have enough insurance? Do they have too much insurance? How might they be able to reduce their premium?

2.Consider the Sampsons' homeowner's insurance. Do they have enough insurance? Do they have too much insurance? Should they increase their deductible?

Answer rating: 100% (QA)

1 The Sampsons have a standard level of coverage with their car insurance policies including a 1000 ... View the full answer