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Chapter $10$

Financial Planning Exercise $5$

Personal automobile policy coverage

Finn Stone has a PAP with coverage of $$25,000/$$$50,000$ for bodily injury liability, $$25,000$ for property damage liability, $$2,000$ for medical payments, and a $$500$ deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out$-$of$-$pocket costs? Round the answers to the whole dollar, if necessary. Leave no cells blank, be sure to enter $"0"$ wherever required.

Finn loses control and skids on ice, running into a parked car and causing $$4,520$ damage to the unoccupied vehicle and $$3,595$ damage to his own car.

Total paid by the insurance company: $

Finn's out$-$of$-$pocket costs: $

Finn runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $$27,000$ each.

Total paid by the insurance company: $

Finn's out$-$of$-$pocket costs $($for both victims$)$: $

Finn's $18-$year$-$old son borrows his car. He backs into a telephone pole and causes $$1,350$ damage to the car.

Total paid by the insurance company: $

Finn's out$-$of$-$pocket costs: $