Question

Kurt Simmons has 15/30/5 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 $6,500, and damage to the store was $15,000 (a) What amount will the insurance company pay for the damages? ount paid (b) What amount will Kurt have to pay? ount paid

Answer 1

(a) The insurance company will pay a maximum of $5000 for the property damage. 15/30/5 means $5000 is the maximum liability of the insurance company in case of property damage, $15000 is the maximum liability for a single person in case of injury(or death) and $30,000 is the maximum liability for total persons in case of injury(or death).

(b) Kurt will pay $16,500 ($6500 +$15000 - $5000).