Question

While Donald was driving home from work, a small rock hit his windshield and cracked it. Given the policy summary below, how much money will he receive from his insurance company after filing his claim if the cost to replace the windshield is $450?

Comprehensive deductible: $375
Collision deductible: $550
Premium of $625 for 4 months
a) $75
b) $725
c) $375
d) $550

Answer 1

Donald will receive $75 from his insurance company to cover the windshield replacement because this is the amount remaining after subtracting his comprehensive deductible of $375 from the total repair cost of $450.

Step-by-step explanation:

Donald's windshield got cracked by a small rock, and he is looking to file a claim with his insurance company to cover the cost of replacing the windshield, which is $450.

Given the policy summary, which includes a comprehensive deductible of $375, we can calculate the amount Donald will receive.

The comprehensive deductible is the amount that Donald must pay out of pocket before his insurance coverage kicks in.

For the windshield replacement cost of $450, since the deductible is $375, the insurance company will cover the costs above this deductible amount.

Therefore, we subtract the deductible from the total cost: $450 - $375 = $75.

So, the amount Donald will receive from his insurance company after filing the claim is $75.