183k views
2 votes
Johann maintains a $75,000 insurance policy on his boat. He pays $50 per month in premiums and his deductible is $2,500. If he is involved in an accident that does $2,000 worth of damage to the boat, how much will he have to pay?

User Jpjacobs
by
6.1k points

2 Answers

1 vote

The correct answer is:


$2,000.


Step-by-step explanation:


A deductible is an amount that an insurance company requires you to pay before they begin paying on any charges.


Since Johann's deductible is $2,500, this means he is required to pay $2,500 before his insurance will pay anything.


Since the damages are $2,000, which is less than $2,500, he will have to pay the full $2,000.

User Immortal Blue
by
6.6k points
0 votes
If he is involved in an accident that does $2,000 worth of damage to the boat, he will have to pay the full $2,000, since his deductible is $2,500, meaning that his insurance company only starts to pay for damage after it exceeds $2,500.
User Guleria
by
7.1k points