Question

Bill buckely has​ split-limit 125​/250​/50 automobile liability insurance on his 2008 subaru. driving home from work in a​ snowstorm, he hit a​ mercedes, slid into a​ guardrail, and knocked down a telephone pole. damages to the​ mercedes, the​ guardrail, and the telephone pole were ​$37 comma 849​, ​$9 comma 761​, and ​$17 comma 814 respectively. how much will​ bill's insurance company​ pay? how much will bill be required to pay​ directly?

Answer 1

how much will​ bill's insurance company​ pay?

• $50,000

how much will bill be required to pay​ directly?

• $15,424

Step-by-step explanation:

The split limits are used by insurance companies to separate the amounts that they cover per accident:

• first limit is the maximum paid per person injured = $125,000
• second limit is the maximum paid to all injured people = $250,000
• third limit is the maximum paid for property damages = $50,000

the damages caused by this accident were:

• Mercedes Benz car = $37,849
• guardrail = $9,761
• telephone pole = $17,814
• total damages = $65,424

Since Bill's limit for property damage is $50,000, he will need to pay $65,424 - $50,000 = $15,424