Question

Sam paid $1,200 to get his old car painted and is quite proud of how it looks. Two weeks later, while driving to Tallahassee, he runs through a severe thunder and hail storm. When he arrives he finds the entire surface of his car hood, top and trunk to be pitted and scratched. He is furious. He calls his agent to report the damage and file a claim under this insurance. He has a Personal Auto Policy with Collision with a deductible of $500 and Comprehensive with a deductible of $100. The repair estimate comes to $1,755.00. How much would you pay Sam?

(A) $1,655.00
(B) $1,755.00
(C) $2,955.00
(D) $1,425.00

Answer 1

Sam would receive $1,655.00 from the insurance company.

Step-by-step explanation:

Sam would need to file a comprehensive claim for the damage to his car caused by the hail storm. The repair estimate comes to $1,755.00. Since he has a deductible of $100 for comprehensive insurance, the insurance company would cover the remaining amount of the repair cost after the deductible is subtracted. Therefore, the amount that Sam would receive from the insurance company would be $1,655.00 (Option A).