Theresa has only a basic 25/50/25 liability policy on her vehicle. her son borrowed it and caused an accident where he and two p
assengers were injured. one passenger suffered $30,000 in damages and the other passenger and theresa's son each suffered $10,000 in damages. damage to the other car involved in the accident was $20,000. theresa's vehicle, worth $7,500 was totaled. how much will the insurance company pay in total damages?
25 - represents the bodily injury per person. 25 stands for $25,000 maximum payout per injured person.
In this case, 2 persons were injured excluding the son. The person who suffered $30,000 will only receive $25,000 from the insurance company. The person who suffered $10,000 will receive $10,000 from the insurance company.
50 - represents the bodily injury per accident. 50 stands for $50,000 maximum payout per accident. In the above case, the two injured passengers totalled $35,000, which is below the maximum payout.
25 - represents the amount of property damage. 25 stands for $25,000 maximum payout. The other car suffered a damage of $20,000 so the insurance company will payout $20,000.
Total payouts are: passenger 1 - 25,000 passenger 2 - 10,000 car damage - 20,000 total payout from insurance: $55,000
Since this is an at-fault incident, Teresa will have to payout $5,000 to passenger 1 to cover the $30,000 damage. She will have to personally answer for the $10,000 cost of damage to her son as well as the $7,500 damage to her vehicle.
