Insurance.
it’s easy to think that if you are insured, it will not cost you anything if you have an accident. but the repair bills add up a lot of money.
in fact the insurance company will only pay you the value of your car on the day of the accident. this will not be the same as the price you paid for it, because the value goes down as the car gets older. the repair bill may be bigger than the value of the car. if the repair bill is big, the company does not pay for the repair, but write off the car. the money they pay then should alow you to buy another car of the same age and make.
when insurance is purchased, it is important that you get the best protection for the money paid. the best value is not always the policy with the lowest premium. usually, the longer the term of the policy, the lower the premium is each year. a policy for five years would have a lower annual premium than a policy for one year. business saves money by purchasing a blanket policy instead of individual policies. however, these are money - saving practices only if they provide needed insurance.

2 письменно ответьте на вопросы к тексту
1 how much money will you get if your car after an accident is written off?
2 how is the term of the policy and the premium interrelated?
3 how does business try to save money?