Question

Glenda has automobile insurance with medical payments in the amount of $2000, and $50-deductible collision insurance. In an accident in which Glenda is at fault, $350 worth of damage is done to her car. In addition, Glenda spends a day at the hospital for observation. She is found to have no serious injuries and released, but her hospital bill is $276. How much will the insurance company pay for Glenda's expenses? Benefit payment?

Answer 1

Answer:

$576 is the amount pay by  insurance company .

Step-by-step explanation:

Definition of deductible

The deductible is the amount of money you will pay before the insurance  company starts paying you.

As given

Glenda has automobile insurance with medical payments in the amount of $2000, and $50-deductible collision insurance.

In an accident in which Glenda is at fault, $350 worth of damage is done to her car.

Glenda spends a day at the hospital for observation.

She is found to have no serious injuries and released, but her hospital bill is $276.

Total cost of accident and hospital  = Cost of damage in accident + Cost of hospital bill

Putting all the values in the above

                                                            = $ 350 + $ 276

                                                            = $626

Thus

Amount pay by insurance company = Total cost of accident and hospital - Deductible cost

                                                            = $626 - $ 50

                                                            = $576

Therefore $576 is the amount pay by  insurance company .

Answer 2

The total of Glenda’s bills comes to $526. This is adding the $350 car damage and the $276 hospital bill. If you subtract her deductable, which she will pay out of pocket, the total comes to $576 – which is how much the insurance company will pay.