Question

Help please

Bob has a collision deductible of $500. He has Bodily Injury
Liability coverage limit of $25,000. He hits another driver and injures her severely.
The case goes to trial and there is a verdict to compensate the injured person for $40,000
a. How much does Bob have to pay?
b. How much does his insurance pay?

Answer 1

a. Since Bob's Bodily Injury Liability coverage limit is only $25,000, he is responsible for paying the remaining $15,000 out of his own pocket. Therefore, Bob has to pay $15,000.

b. Bob's insurance will pay up to his Bodily Injury Liability coverage limit of $25,000. Therefore, Bob's insurance will pay $25,000.