In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change? AA Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/$50,000 $22.50 $50/100,000 $31.75 $100/300,000 $40.25 Property Damage $25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision $100 deductible $520.00 $250 deductible $415.25 $500 deductible $275.75 Comprehensive $50 deductible $110.25 $100 deductible $100.00 a. $12.48 b. $31.31 c. $149.75 d. $275.75

Henry's current monthly auto insurance bill is $43.79. This includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive. If he increases the deductible for both collision and comprehensive to the highest amount permitted by his insurance company, his monthly auto insurance bill will be reduced by $12.48. This is because the higher deductible means that Henry will have to pay more out of pocket if he is in an accident, but his monthly premium will be lower.

Here is the calculation:

* Current monthly auto insurance bill: $43.79

* Collision deductible: $250.00

* Comprehensive deductible: $50.00

* New collision deductible: $500.00

* New comprehensive deductible: $100.00

* New monthly auto insurance bill: $43.79 - ($250.00 + $50.00) + ($500.00 + $100.00) = $12.48

Therefore, Henry's monthly auto insurance bill will be reduced by $12.48 if he increases the deductible for both collision and comprehensive to the highest amount permitted by his insurance company.