Question

An insured has physical damage insurance with your company with a $250 deductible for Comprehensive and a $500 deductible for Collision. A rock breaks his windshield, and the cost for repair is $475.00. How much will you pay under his policy?

(A) $250.00
(B) $ - 0 - , unless your insured is at fault
(C) $225.00
(D) $475.00

Answer 1

The insured will pay their deductible, and the insurance company will cover the rest of the repair costs.

Step-by-step explanation:

The insured will pay the deductible amount that is specified in their policy, and the insurance company will cover the rest of the repair costs up to the policy limit. In this case, the insured has a $250 deductible for Comprehensive and a $500 deductible for Collision. Since the windshield repair cost is $475, the insured will pay the $250 deductible for Comprehensive, and the insurance company will pay the remaining $225.

Therefore, the correct answer is (C) $225.00.