Question

During a violent windstorm, your car was damaged by a fallen tree. The estimated cost of repair was determined to be $3,822. If your policy carries $500 deductible for collision and $100 for deductible for comprehensive, determine how much of the cost of the damages you will be required to pay.

Answer 1

Answer: $600

Explanation:

The deductible is the amount you are required to pay. So in this case the total deductible is:

deductible for collision + deductible for comprehensive = $500 + $100 =$600

Hence the insurer will have to pay the cost minus this total deductible:

$3,822 - $600 = $322