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. QUESTIONS:Which among the two options is the most economical? Explain why this option is better than the other. What other options should you have explored? Give atleast 3.

Insurance is a way to protect against financial loss. Insurance work is usually done to protect…

Answered: Which among the two options is the most…

Social Psychology (10th Edition)

10th Edition

ISBN:9780134641287

Author:Elliot Aronson, Timothy D. Wilson, Robin M. Akert, Samuel R. Sommers

Publisher:Elliot Aronson, Timothy D. Wilson, Robin M. Akert, Samuel R. Sommers

Chapter1: Introducing Social Psychology

Section: Chapter Questions

Problem 1RQ1

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Question

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.

QUESTIONS:

Which among the two options is the most economical? Explain why this option is better than the other.

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

Expert Solution