Consider the situation below:You were involved in an accident with the other car, and the accident was your fault!The owner of the other vehicle asked you to pay for the repair of his car. He got an estimate of P8, 030.00 from one repair shop and P8, 520.00 from another repair shop. You are now thinking of the following options to do afterwards:Pay the owner of the other vehicle P8, 030.00. This will not involve your insurance company, thus will not increase your annual premium. And most of all this will also keep you’re driving record ―clean.‖ File a claim against your insurance company. The insurance company will cover the amount of P 5, 000.00 only for the repair of the other vehicle. However, this will make your insurance premium increase by P 1, 200.00 per year.question:What other options should you have explored? Give atleast 3.

Introduction Suppose you were involved in a accident and it was only my fault. Then the car owner…

Answered: Consider the situation below: You were…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the situation below:

You were involved in an accident with the other car, and the accident was your fault!

The owner of the other vehicle asked you to pay for the repair of his car. He got an estimate of P8, 030.00 from one repair shop and P8, 520.00 from another repair shop.

You are now thinking of the following options to do afterwards:

Pay the owner of the other vehicle P8, 030.00. This will not involve your insurance company, thus will not increase your annual premium. And most of all this will also keep you’re driving record ―clean.‖

File a claim against your insurance company. The insurance company will cover the amount of P 5, 000.00 only for the repair of the other vehicle. However, this will make your insurance premium increase by P 1, 200.00 per year.

question:

What other options should you have explored? Give atleast 3.

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