Jake drove Amanda's truck to the football bowl game because his car was broken.On the way home,Jake was involved in an accident that was his fault.The resulting liability damages totaled $85,000.Jake has $100,000 liability coverage on his car,and Amanda has $50,000 on her truck.How would the $85,000 liability damages be paid for this accident?
A) $50,000 from Amanda's policy with no further payment
B) $85,000 from Jake's policy
C) $50,000 from Amanda's policy plus $35,000 from Jake's policy
D) $50,000 from Amanda's policy plus $35,000 out of Jake's pocket
E) $50,000 from Amanda's policy plus $35,000 out of Amanda's pocket.

Question

Quizplus · Accepted Answer

Since Jake was driving Amanda's truck with her permission, her insurance policy is the primary coverage. Therefore, the first $50,000 of liability damages will be paid by Amanda's policy. The remaining $35,000 will be paid by Jake's policy since his coverage limit is higher than Amanda's policy limit. Jake will not have to pay anything out of pocket for this accident.

Jake Drove Amanda's Truck to the Football Bowl Game Because