Ignacio was involved in an auto accident in which he was at fault. His own car sustained $3,827 damages and the other vehicle cost $1,709 to repair. Ignacio was not injured, but the driver of the other car required medical treatment costing $34,550 and a passenger's injuries totaled $3,944. Ignacio's policy includes 15/30/10 liability, $250 deductible collision and $100 deductible comprehensive. How much of the damages must the insurance company pay?

Question

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The insurance company is responsible for the damages to the other vehicle and the medical expenses of the driver and passenger, up to the policy limits. The policy limits are 15/30/10, which means that the insurance company will pay up to $15,000 for property damage, $30,000 for bodily injury per person, and $10,000 for bodily injury per accident. The total damages are $3,827 + $1,709 + $34,550 + $3,944 = $44,030. The insurance company will pay up to the policy limits, which is $30,000.

Ignacio Was Involved in an Auto Accident in Which He