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Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter10: Protecting Your Property
Section: Chapter Questions
Problem 6FPE
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Question

You are responsible for an automobile accident. Use the information below to determine:

  1. the total amount your liability insurance will pay for the accident  
  2. the total amount your collision insurance will pay for the accident
  3. the amount 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
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