Question

Can someone help me with this?

You are responsible for an automobile accident. Use the information below to determine:
The total amount your liability insurance will pay for the accident
The total amount your collision insurance will pay for the accident
The number of additional damages you are responsible for as a result of the accident

You and the driver of the other car were the only people involved in the accident. There were no injuries from the accident.

You have a 50/100/50 liability insurance policy with no deductible
You have collision insurance with a deductible of $500
The other car was valued at $25,000 and requires $10,000 in repairs
Your car was valued at $20,000 and requires $15,000 in repairs

Answer 1

Based on the type of insurance you have and the people involved in the accident, the total amount of liability you will pay is $25,000.

The total amount that your collision insurance will pay is $24,500 and the amount of additional damages you will pay is $0.

What is the total amount you will pay?

The coverage is 50/100/50 means that the insurance company will pay up to $50,000 for damages.

This means that the cost to repair both cars will be covered as it is less than $50,000:

= 10,000 + 15,000

= $25,000

There will be no additional damages.

The amount you will pay personally will be the $500 deductible which means that insurance will pay:

= 25,000 - 500

= $24,500