Question

6. Jefferson has $30,000 property damage insurance and comprehensive/collision insurance with a

deductible of $1,000. He crashes into a house causing $40,000 damage to the house. Jefferson's car needs
$4,500 worth of repairs? How much will Jefferson have to pay total to fix the house and his car?

Answer 1

Answer: Since Jefferson has a $1,000 deductible on his comprehensive/collision insurance, he will have to pay the first $1,000 of his car repairs himself. The insurance will cover the remaining amount, which is $4,500 - $1,000 = $3,500.

For the damage to the house, Jefferson's property damage insurance will cover up to $30,000. Since the damage to the house is $40,000, Jefferson will have to pay the difference out of his own pocket. The amount he will have to pay is $40,000 - $30,000 = $10,000.

Therefore, the total amount Jefferson will have to pay to fix the house and his car is $1,000 + $3,500 + $10,000 = $14,500.

Explanation: