Question

Kurt simmons has 50/100/15 auto insurance coverage. one evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. damage to the parked car was $5,400, and damage to the store was $12,650.
a. what amount will the insurance company pay for the damages? insurance payment $
b. what amount will kurt have to pay? personal liability $

Answer 1

Damage to the parked car is $5,400. Damage to the store is $12,650. Total damage is calculated as follows : 
Total damage = damage to the car + damage to the store Substitute the values in the formula : 
Total damage = $5,400 + $12,650 = $18,050. Total damage is $18,050. 
The insurance company will cover a maximum of $15,000. The remaining amount of the damage has to be paid by Kurt. The remaining amount is calculated as : 
Amount paid by Kurt = Total damage – amount paid by insurance company 
Substitute the values in the formula : 
Amount paid by Kurt = $18,050 - $15,000 = $3,050 
Therefore, he will have to pay the remaining $3,050