Question

David owns a car and has purchased the minimum coverage and limits that is required by law in the state of Mississippi. He is involved in a hit-and-run accident (the other car did not stop) and his car sustains damage of $40,000. How much does David's insurance pay for the damage to his car?

Answer 1

If David has collision coverage, his insurance will pay for the $40,000 damage to his car, up to his policy's limit for collision coverage.

Step-by-step explanation:

David's insurance will only pay for the damages to his car if he has purchased collision coverage in addition to the minimum required coverage. Collision coverage helps pay for damages to the insured vehicle in the event of a collision, regardless of fault. Since David's car was damaged in a hit-and-run accident and the other car did not stop, it would be considered a collision. Therefore, if David has collision coverage, his insurance will pay for the $40,000 damage to his car, up to his policy's limit for collision coverage. Since the minimum required insurance does not include collision or uninsured motorist coverage, the $40,000 in damage to David's car will not be covered by his current policy.