Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) Steve lives in Quebec. He just bought a used car for $8,000. As he is 23 years old, the cost of his car insurance

2) Steve lives in Quebec. He just bought a used car for $8,000. As he is 23 years old, the cost of his car insurance is high despite him shopping around. Just five days after buying the car and securing the car insurance, he had a car accident. No one was hurt but the damages to his car were $3,000! The other car had $15,000 in damages as it was a new Mercedes. Steves car insurance policy has a deductible of $1,000 for collision and $500 for comprehensive. The insurance company concluded that Steve was not at fault. Which statement is correct? a) With no-fault insurance both are still responsible and must split the deductible 50:50. b) With no-fault insurance, Steve must pay a $1,000 deductible and claim it back from the other insurance company. c) With no-fault insurance, Steve must pay a $500 deductible and claim it back from the other insurance company. d) As Steve is not responsible for the accident, he does not have to pay a deductible. e) As Quebec has no-fault insurance, both Steve and the other driver are not at fault and neither have a deductible to pay

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions