Answer: a. Liability insurance will cover damages caused to others, so the insurance will pay for both the truck and taco stand damages.
Liability insurance will cover up to $30,000 for bodily injury per person, up to $60,000 total for bodily injury per accident, and up to $40,000 for property damage per accident.
Since the cost to fix the truck is $14,000, and there were injuries to people in the truck, the insurance will pay up to $60,000 for bodily injury to the passengers in the truck. The taco stand will also be covered under the property damage liability coverage, which is up to $40,000 per accident.
Therefore, the insurance will pay:
- $14,000 for the truck
- $30,000 for the taco stand
- Up to $60,000 for bodily injury to the passengers in the truck
- The PIP insurance will cover medical expenses up to $10,000 per person.
The total insurance pay will be $104,000.
Lindsey will be responsible for paying any damages beyond what the insurance covers. In this case, Lindsey will be responsible for any property damage exceeding $40,000 and any bodily injury expenses exceeding $60,000.
b. The driver of the truck's medical bills total $33,500. This falls within the bodily injury liability coverage limit of $60,000 per accident, so the insurance will cover the entire cost of the medical bills.
Therefore, the insurance will pay $33,500.
Lindsey will not have to pay anything out of pocket for the driver's medical bills.
c. The total medical bills for Lindsey's passengers are $10,000 + $8,000 + $13,000 = $31,000. This falls within the PIP coverage limit of $10,000 per person, so the insurance will cover the entire cost of the medical bills for all three passengers.
Therefore, the insurance will pay $31,000.
Lindsey will not have to pay anything out of pocket for the passengers' medical bills.
Explanation: