Question

An insured has $100 deductible Other Than Collision, and $250 deductible Collision. If a rock breaks his windshield and repairs total $675, how much will be paid?

a) Payment only will be made if he is not at-fault
b) $425, under Collision with a $250 deductible
c) $575. under Other Than Collision, with a $100 deductible
d) $675, under Other Than Collision, with no deductible

Answer 1

The correct amount to be paid by the insurance company for the windshield repair is $575, after applying the $100 'Other Than Collision' (Comprehensive) deductible. This type of claim does not require the driver to be at-fault.

Step-by-step explanation:

The student has asked about the amount to be paid by the insurance company for a windshield repair due to damage from a rock. Given that the insured has a $100 deductible for Other Than Collision and a $250 deductible for Collision, and the total repair costs are $675, we must first determine the type of coverage that applies to the situation. A rock breaking a windshield is typically covered under the 'Other Than Collision' part of an automobile insurance policy, often referred to as Comprehensive coverage.

Therefore, the deductible for Other Than Collision will apply, which is $100. The insurance company would pay the total repair cost minus the deductible. To calculate this, we subtract the deductible from the total repair costs: $675 - $100 = $575. Hence, the insurance company will pay $575 towards the repair of the windshield.

The payment is not dependent on fault in this case, as comprehensive coverage applies regardless of fault, and the coverage for windshield damage usually doesn't require the driver to be at-fault. Consequently, the correct option is (c) $575, under Other Than Collision, with a $100 deductible.