Question

A teenage driver crashes her parents' minivan into an office building, causing $85,000 in damage to the building. The automobile liability insurance limits are 100/250/75. How will the damages be allocated between the driver and the insurance company?

Answer 1

Step-by-step explanation:

Given that

Damage to the building = $85,000

The insurance limits is

100/25/75 means

$100,000 is the coverage amount for death also

25,000 is the bodily injury per accident

And, the 75,000 is the damage of the property

So the damage allocated between the driver and the insurance company is $10,000 which is a difference amount of

= $85,000 - $10,000

= $75,000

Because maximum amount is $75,000