Question

Kurt Simmons has 65/110/20 auto insurance coverage. One evening, he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $6,700, and damage to the store was $17,820. a. What amount will the insurance company pay for the damages

Answer 1

$20,000

Step-by-step explanation:

Auto insurance is taken on vehicles to cover for damages that occur during a car accident. There are limits to the amount covered for different categories of loss and injury.

The losses can be property loss, bodily harm, or legal issues.

The three aspects covered by auto insurance are: bodily injury liability cover, property damage liability, and uninsured motorist coverage.

In this instance Kurt Simmons has 65/110/20 auto insurance coverage.

This means he has a $65,000 cover for bodily injury per person, $110,000 total bodily injury per accident, and $20,000 property damage coverage per accident.

Since the damage to the parked car and the store are property damages, the insurance company will pay $20,000 for the damages.

Kurt will have to pay the balance.