Analysis of Auto Insurance Policy

Analysis of Auto Insurance Policy
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Analysis of Auto Insurance Policy
Progressive Direct Insurance Co. policy on my motor vehicle lists two types of coverage. Bodily injury liability to others is one of the coverage provided under the policy. The coverage has a limit of US$ 25,000 for each person, and a maximum limit of US$ 50,000 for every accident (Progressive, 2022a). Property damage liability is the other coverage that is provided under the policy. To this end, the company offers a limit of US$ 25,000 for every accident under property damage liability. The combined premium for the bodily injury liability and property damage liability is US$ 613. Notably, I decided not to seek coverage for uninsured and underinsured motorists. The total premium paid for the policy is US$ 613. The premium is paid on a semi-annually basis.
The garaging ZIP code is based on the address information that I provided to the insurer. To this end, the insurer of the car indicates that the insured vehicle is mainly parked at the Zip code 36832, which is the associated ZIP code of Auburn, Alabama. Auburn city is a part of Lee County in Alabama. The classification of primary usage of the car is personal/pleasure. To this end, the classification of the primary use of the car as personal/leisure acknowledges that my car is mainly used for leisure activities, making it more of a vehicle that is mainly used during weekends. The classification is based on my annual mileage, which lies between 14,000 – 15,999 miles.
Several premium discounts are currently in effect in my policy. The paid-in-full discount exists and is given to clients who pay their premiums in full. Five-year accident-free discount is included in my policy, as I have driven for five years without experiencing an accident. As I acquired the auto policy through the online channel, the Online Signature – First Policy Period Only discount applies to my policy. In addition, using the online channel to secure my auto policy earned me the Online Quote discount. The policy also takes into account the Continuous Insurance: Silver, Paperless, and Three-Year Safe Driving discount into account when calculating my premium. All listed discounts are related to the nature of my current policy. The smart technology discount is another premium account that has been taken into consideration when determining my premiums. The discount is related to the type of vehicle I am insuring.
Notably, I would be eligible for a Snapshot discount if I had decided to continue being a part of the Snapshot program offered by the company. In the policy, my withdrawal from participation in the Snapshot app program led to an increase in my premium cost by US$ 46.19 (Progressive, 2022b). I would have also been eligible for a good student discount if I added the information that I am a full-time student who maintains an average grade of above B. The policy reduces the premium cost by 10 percent (Progressive, 2022b). I could have also received a paperless discount if I had indicated that the policy document should be sent to my email as opposed to a physical copy. In addition, setting up an automatic payment plan from my bank account would have...