Question
give me answers Although car insurance is legally required by all states, the coverage provided by different policies can vary dramatically, such that even an
give me answers
Although car insurance is legally required by all states, the coverage provided by different policies can vary dramatically, such that even an insured motorist can end up paying large amounts of money out-of-pocket. Consider the following example involving Tim, who has a family auto policy (FAP) that provides liability coverage with limits of 15/30/15, no medical payment insurance, and uninsured and underinsured motorist coverage with limits of 1/2. He has collision and comprehensive auto insurance, both with a deductible of $100. Suppose one day Tim fails to notice a red light, causing him to blind-side another car crossing the intersection. Fortunately, he is not badly injured, but the medical bill for his hospital examination nonetheless amounts to $624. The driver of the other car, a woman named Madeline, suffered severe injuries from the direct impact of the accident. She required surgery and a hospital stay and then additional procedures in the months that followed. Her medical bills, plus compensation for being unable to work, totaled $32,634. Madelines insurance company successfully filed a claim against Tim, exercising subrogation rights. Coverage A of Tims plan will reimburse him with for Madelines medical bills. Tims medical bills are . Tims car was relatively unharmed by the collision but required $800 in minor repairs; Madelines car was destroyed, making Tim liable for paying the $9,300 replacement value. Madelines car was pushed onto a nearby sidewalk on impact, destroying a nearby lawn and causing additional damage to a parked car. This damage totaled $7,254. Tims liability coverage also will reimburse him for up to $ in property damage, so he is responsible for paying out-of-pocket in property liability damages. Which of the following is true regarding the damage to his own car? It will be reimbursed fully, minus the $100 deductible. It is not covered under his policy. It will be reimbursed up to the difference between his liability coverage and the damage to other property.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started