Al Smith, who lives in territory 5, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Al, who was at fault in an accident, caused $4,000 damage to the other auto as well as $900 damage to his own car. Also, the courts awarded $15,000 and $7,000, respectively, to the two passengers in the other car for personal injuries. Al is responsible to pay a total of:

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Al's liability insurance covers up to $10,000 per person and $20,000 per accident for bodily injury, and $5,000 for property damage. The damages are $4,000 for the other car and $22,000 for injuries. The insurance covers all property damage and $20,000 of the injury claims, leaving Al responsible for $2,000. For his own car, he pays the $300 deductible. Total: $2,300, which is not listed.

Al Smith, Who Lives in Territory 5, Carries 10/20/5 Compulsory