Saheel has $20,000 property damage insurance and $5,000 comprehensive and collision insurance with a $500 deductible.One evening he slides on a patch of ice and hits a parked car,causing $4,500 worth of damage.The accident causes $1,750 of damage to his own car.How much will the insurance pay to fix both cars?
A) $5,750
B) $6,250
C) $8,250
D) $24,500

Question

Quizplus · Accepted Answer

The insurance will cover the $4,500 damage to the parked car under property damage insurance. For Saheel's car, the damage is $1,750, but he has a $500 deductible, so the insurance will pay $1,250 ($1,750 - $500). Total insurance payout is $4,500 + $1,250 = $5,750.

Saheel Has $20,000 Property Damage Insurance and $5,000 Comprehensive and Collision