Question

Melvin has an auto insurance policy that includes both collision and comprehensive coverage. he has a $250 deductible on his collision coverage and a $100 deductible on his comprehensive coverage. his car has a book value of $7,500 when he is in a one-car accident with a tree. the car suffers damages of $5,000. how much will melvin's insurance company pay for this repair work?​

Answer 1

The insurance company will cover $4,750 of the damages. The insurance company will take the deductable of $250 out of the money given to Melvin for repair work leaving him with $5,000 - $250 = $4,750