Question

Coverage on a One-Vehicle Accident. Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $17,500 in damage. The truck has a book value of $40,000. Bill carried collision insurance with a $500 deductible. How much will Bill be reimbursed by his policy?

Answer 1

Answer:

$17,000

Explanation:

Data provided in the question

Suffered amount in damage = $17,500

Book value of the truck = $40,000

And, the deductible amount = $500

So, the amount reimbursement by his policy is

=  Suffered amount in damage - the deductible amount

= $17,500 - $500

= $17,000

We simply applied the above formula so that the reimbursed amount could arrive