Question

,Juanita was involved in an auto accident in which she was at fault. Her own car sustained $1,248 damages and the other vehicle cost $1,500 to repair.Juanita was not injured, but the driver of the other car required medical treatment costing $17,606 and a passenger's injuries totaled $11,995. Juanita's policy includes 10/20/5 liability, $500 deductible collision and $100 deductible comprehensive. How much of the damages must Juanita pay (in $)?

Answer 1

Juanita must pay a total of $10,849 out of pocket for damages and medical expenses that exceed her policy coverage limits and for her own car's repairs which are covered by the collision deductible.

Step-by-step explanation:

Juanita's insurance policy includes 10/20/5 liability coverage, which means her insurance will cover up to $10,000 for injuries per person, $20,000 for total injuries per accident, and $5,000 for property damage per accident. Her policy also includes a $500 deductible for collision and a $100 deductible for comprehensive coverage. Calculating the total amount Juanita must pay involves evaluating the costs above these coverage limits and including deductibles where necessary.

For property damage:

• $1,248 for her car (paid by her because collision coverage generally covers your car damage minus deductible).
• $1,500 for the other car, but her policy only covers $5,000 so she pays none of this.

For medical costs:

• $17,606 for the other driver - Juanita's policy covers $10,000 so she owes $7,606 out of pocket.
• $11,995 for the passenger - the policy will cover the remaining $10,000 of the $20,000 per accident, but Juanita still owes $1,995.

Juanita's total out-of-pocket costs will be $1,248 (her car repair) + $7,606 (driver's injuries exceeding policy) + $1,995 (passenger injuries exceeding policy) = $10,849.