Question

If one evening you lost control of your car (because the road was icy and you were turning left a little bit too fast), your car hit a parked car. the damage to the parked car was $5,250. how much will insurance pay for the damage, according to your auto insurance policy?

Answer 1

The insurance payout for car damage depends on the specific terms of your auto insurance policy, including coverage limits and deductibles. Without details of your policy, we can't specify the exact amount, but typically, insurance will cover the costs minus any applicable deductible.

Step-by-step explanation:

To determine how much insurance will pay for the damage to the parked car, which was reported to be $5,250, we need to consider the specific terms of your auto insurance policy. Insurance policies have different coverage limits and deductibles. If your policy covers the entire damage amount with no deductible, the insurance company will pay the full $5,250. However, if there is a deductible that you are responsible for, the insurance company will subtract that amount from the $5,250 and pay the remainder. For example, if you have a $500 deductible, the insurance will pay $4,750. It's important to check the details of your policy to confirm the exact coverage.

Using the provided information about a simplified example of automobile insurance involving a group of 100 drivers, if each driver pays a premium of $1,860 annually, the insurance company would collect $186,000 in total. This amount covers all damage costs within that year for the group. In this scenario, the idea is that the collective premiums cover the total costs of all damages incurred by insured parties. Note that without specific details of your insurance policy, such as the deductible and coverage limit, we cannot promptly specify the amount the insurance will pay for your accident.