Brian was involved in an auto accident in which he was at fault. His own car sustained $3,026 damages and the other vehicle cost $1,424 to repair. Brian was not injured, but the driver of the other car required medical treatment costing $32,375 and a passenger's injuries totaled $20,704. Brian's policy includes 50/100/50 liability, $500 deductible collision and $100 deductible comprehensive. How much of the damages must the insurance company pay?

Question

Quizplus · Accepted Answer

Brian's insurance policy includes 50/100/50 liability coverage, which means it covers up to $50,000 for bodily injury per person, $100,000 total for bodily injury per accident, and $50,000 for property damage. The damages to the other vehicle ($1,424) and the medical costs for the driver ($32,375) and passenger ($20,704) total $54,503, which is under the $100,000 bodily injury per accident limit. The property damage ($1,424) is also under the $50,000 limit. Therefore, the insurance company must pay the full amount of these claims, which is $54,503. Brian's own car damages are not covered under liability but under collision, which has a $500 deductible, so the insurance would cover $2,526 ($3,026 - $500 deductible) of his car's damages. The total amount paid by the insurance company is $57,029 ($54,503 for liability + $2,526 for collision).

Brian Was Involved in an Auto Accident in Which He