Question

The personal auto policy will pay up to ___ per day up to____ for transportation expenses incurred because of a collision loss as long as collision coverage is provided in the declaration.

Answer 1

The question relates to the daily and overall limits of transportation expenses coverage under a personal auto policy, which can be found in the policy's declaration page. Insurance operates as a collective risk pool where all insured contribute premiums to cover damages incurred by the group.

Step-by-step explanation:

The question asked pertains to the specifics of a personal auto policy coverage for transportation expenses following a collision. A typical insurance policy may specify a daily limit and an overall limit for such coverage. For instance, a policy might state that it will pay up to $X per day, up to a total of $Y for transportation expenses. These amounts, X and Y, should be detailed in the insurance policy's declaration page. The insurance policy essentially operates as a collective risk pool, with each insured member contributing a premium that collectively covers the damages incurred by the group, as illustrated by the example with 100 drivers.

For example, if your personal auto policy provides $30 per day up to $900 in transportation expenses, you would be eligible to receive up to $30 per day for a rental car or other transportation costs, but not more than $900 in total.