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Sagot :
Answer:
Adrian should not purchase the additional $200/month coverage to protect his $1,000 vehicle. Here's why:The cost of the insurance policy ($200/month) is extremely high compared to the value of the car ($1,000). Over the course of a year, the insurance would cost $2,400, which is more than twice what the car is worth.Even if Adrian gets into an accident and the insurance company pays him the $1,000 value of the car, he will have still lost money overall by paying $2,400 in premiums. It would be cheaper for him to simply pay for any repairs out-of-pocket if an accident occurs.The additional coverage is not a good value for Adrian given the low value of his car. He would be better off saving the $200/month and using that money to purchase a replacement vehicle if his current one is damaged beyond repair.In summary, Adrian's best decision is to not purchase the additional $200/month coverage. The high cost of the policy compared to the low value of his car makes it an unwise financial choice. Adrian should decline the coverage and self-insure his older, inexpensive vehicle.
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