Question

lijah has car insurance that includes collision coverage with a deductible of $1,500 and a coverage limit of $25,000. After having an accident, he files a valid claim for car repair costs totaling $5,750. Calculate how much Elijah will pay, and how much the insurance will pay. Show your work.

Answer 1

Elijah will pay the $1,500 deductible, and the insurance will pay the remaining $4,250 of the total $5,750 repair costs.

Step-by-step explanation:

The student has asked how much Elijah will pay and how much the insurance will pay when he files a claim for car repair costs with his auto insurance that has a $1,500 deductible and a $25,000 coverage limit. The total repair costs are $5,750. To calculate this, we subtract the deductible from the total repair costs to find out how much the insurance company will pay. Anything above the deductible is paid by the insurance up to the coverage limit.

Elijah's payment: Deductible = $1,500

Insurance payment: Total repair costs - Deductible = $5,750 - $1,500 = $4,250

Therefore, Elijah is responsible for the $1,500 deductible, and the insurance will cover the remaining $4,250 of the repair costs.