Question

While Donald was driving home from work, his windshield was hit by a small rock and cracked. Given the policy summary below, how much money will he receive from his insurance company after he files his claim if the cost to replace the windshield is $400?

Summary:
Comprehensive deductible: $375
Collision deductible: $550
Premium of $625 for 4 months
Option 1: $400
Option 2: $25
Option 3: $550
Option 4: $625

Answer 1

Donald will receive $25 if he has a comprehensive deductible of $375 and $400 to replace the windshield.

Step-by-step explanation:

To determine how much money Donald will receive from his insurance company, we need to look at the policy summary and deductibles. The comprehensive deductible is $375 and the collision deductible is $550. Given that the cost to replace the windshield is $400, the amount Donald will receive depends on the deductible he chose.

Option 1: $400 - $375 (comprehensive deductible) = $25

Option 2: $400 - $25 (comprehensive deductible) = $375

Option 3: $400 - $550 (collision deductible) = $0

Option 4: Donald will not receive any money back because the premium of $625 for 4 months is higher than the cost to replace the windshield.