Gina has 250/500/50 liability insurance and $50,000 PIP insurance. One afternoon, she changed lanes too quickly, hit the metal guard rail, and then hit a tour bus. Four people are seriously hurt and sue her. Twenty others have minor injuries. Gina’s boyfriend, who was in her car, was also hurt.
a. The guard rail will cost $2,000 to replace. Gina also did $9,700 worth of damage to the bus. What insurance will cover this, and how much will the company pay?
b. The bus driver severed his hand and cannot drive a bus again. He sues for $2,500,000 and is awarded $1,750,000 in court. What type of insurance covers this? How much will the insurance company pay?
c. The bus driver (from part b) had medical bills totaling $90,000 from an operation after the accident. What type of insurance covers this, and how much will the insurance company pay?
d. Gina’s boyfriend requires $19,000 worth of medical attention. What insurance covers this, and how much will the company pay?