Question

Saheel has $25,000 property damage insurance and $5,000 comprehensive and collision insurance with a $250 deductible. One evening he slides on a patch of ice and hits a parked car, causing $4,500 worth of damage. The accident causes $1,750 of damage to his own car. How much will the insurance pay to fix both cars

Answer 1

the amount paid by the insurance for fixing both cars is $6,000

Explanation:

The computation of the amount paid by the insurance for fixing both cars is shown below:

= Damage amount + own damage amount - deduction allowed

= $4,500 + $1,750 - $250

= $6,000

Hence, the amount paid by the insurance for fixing both cars is $6,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered