Question

Valerie accidentally backed her car into a dumpster and damaged her bumper. The body shop estimated her damages to be $650. If her insurance features are listed below, how much of the cost to repair the bumper is paid by the insurance company? ABC Insurance : Comprehensive deductible=$375, Collision Deductible=$550, Premium of $625 for 4 months.

Answer 1

Given:
Comprehensive deductible - 375
Collision deductible - 550
Premium for 4 months = 625
Body shop estimate on car damages - 650

Valerie's accident will fall under the collision insurance. Collision includes crashing into other cars or stationary objects. In this case, Valerie collided into a dumpster. 

The damage of 650 will be paid by Valeria and ABC Insurance. Valerie will pay 550, the equivalent of her collision deductible, and ABC Insurance will pay for the remaining 100.