Kurt Simmons' insurance will cover a total of $27,400 for the damages, consisting of the full $7,400 for the parked car and $20,000 of the $21,320 for the storefront as it exceeds the property damage coverage limit.
Kurt Simmons has an auto insurance coverage with limits of 70/135/20. This means the insurance will cover up to $70,000 for bodily injuries per person, $135,000 for total bodily injuries per accident, and $20,000 for property damage per accident. The damage to the parked car was $7,400, and the damage to the storefront was $21,320. Since the property damage coverage is $20,000, this is the maximum amount the insurance company will pay for the property damage. Thus, for the parked car, the insurance will cover the full $7,400 as it is within the limit. However, for the storefront damage costing $21,320, the insurance will only cover $20,000 because this is the maximum property damage coverage according to Kurt's policy. Therefore, the total amount the insurance company will pay is $7,400 for the parked car plus $20,000 for the storefront, equaling $27,400.