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Carol owns a delivery van, and insures it for a net annual premium of £684, which is the net cost after a deduction of 43% no claims bonus
Carol pays the net premium in 12 equal installments of £62.70. Carol had an accident and damaged her van. The cost of repairing the damage is £460.
The insurance company decides that the van was underinsured, and was insured for only 80% of its value. Carol 's gross insurance premium is increased accordingly. Carol 's no claims bonus is reduced to 18%.
Calculate:
1. The amount the insurance company pays towards the repairs
2. The new net annual premium charged by the insurance company.
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