David Salter has a PAP with coverage of $50,000/$100,000 for bodily injury liabi
ID: 2786630 • Letter: D
Question
David Salter has a PAP with coverage of $50,000/$100,000 for bodily injury liability, $50,000 for property damage liability, $2,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required.
David loses control and skids on ice, running into a parked car and causing $3,370 damage to the unoccupied vehicle and $3,415 damage to his own car.
Total paid by the insurance company $
David's out-of-pocket costs $
David runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $22,000 each.
Total paid by the insurance company $
David's out-of-pocket costs (for both victims) $
David's 18-year-old son borrows his car. He backs into a telephone pole and causes $325 damage to the car.
Total paid by the insurance company $
David's out-of-pocket costs $
Explanation / Answer
David loses control and skids on ice, running into a parked car and causing $3,370 damage to the unoccupied vehicle and $3,415 damage to his own car.
The insurance company will pay:$3,370 + $3,415 - $500 (deductible) = $6,285
David is responsible for the $500 deductible.
David runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $22,000 each.
David Salter has a PAP with coverage of $50,000/$100,000 for bodily injury liability.
Therefore, the insurance company pays $22,000 per person and $44,000 in total to both persons.
David has no out of pocket expense in this case.
David's 18-year-old son borrows his car. He backs into a telephone pole and causes $325 damage to the car.
The insurance company pays zero because the $325 damage is less than the deductible
David is responsible for the $325 damage because the amount is within the $500 deductible amount.
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