Juanita was involved in an auto accident in which she was at fault. Her own car sustained $1,249 in damages and the other vehicle cost $1,500 to repair. Juanita was not injured, but the driver of the other car required medical treatment costing $17,608 and a passenger's injuries totaled $11,995. Juanita's policy includes 10/20/5 liability, $500 deductible collision and $100 deductible comprehensive. How much of the damages must Juanita pay?
Answer (2)
Calculate the total bodily injury: 17608 + 11995 = 29603 .
Determine insurance coverage for bodily injury: 10000 + 10000 = 20000 .
Calculate Juanita's bodily injury payment: 29603 − 20000 = 9603 .
Calculate Juanita's total payment: 9603 + 500 + 0 = 10103 . The final answer is 10103 .
Explanation
Understanding the Problem We are given that Juanita was at fault in an auto accident. We need to calculate the total amount of damages Juanita must pay, considering her insurance policy limits and deductibles. The policy includes 10/20/5 liability, $500 deductible collision, and $100 deductible comprehensive.
Calculating Total Bodily Injury First, let's calculate the total bodily injury liability. The driver's medical treatment cost $17,608, and the passenger's injuries totaled 11 , 995. S o , t h e t o t a l b o d i l y inj u ry i s : 17608 + 11995 = 29603 $
Determining Insurance Coverage for Bodily Injury Now, let's determine the amount covered by the bodily injury liability. The policy is 10/20/5, which means the maximum coverage is $10,000 per person and $20,000 per accident for bodily injury. Since the driver's medical treatment is $17,608, the insurance will cover a maximum of $10,000 for that person. Similarly, for the passenger's injuries totaling $11,995, the insurance will cover a maximum of 10 , 000. T h e t o t a l co v ere d b y t h e in s u r an ce i s : 10000 + 10000 = 20000 $
Calculating Juanita's Payment for Bodily Injuries Next, we calculate the amount Juanita must pay for bodily injuries. This is the total bodily injury cost minus the amount covered by insurance: 29603 − 20000 = 9603
Calculating Total Property Damage Now, let's calculate the total property damage. Juanita's car sustained $1,249 in damages, and the other vehicle cost 1 , 500 t ore p ai r . T h e t o t a lp ro p er t y d ama g e i s : 1249 + 1500 = 2749 $
Determining Insurance Coverage for Other Vehicle's Damage We determine the amount covered by the property damage liability. The policy covers up to $5,000 for property damage. The damage to the other vehicle is $1,500, which is less than $5,000, so it is fully covered by Juanita's liability insurance.
Calculating Juanita's Payment for Other Vehicle's Damage Now, we calculate the amount Juanita must pay for the other vehicle's damage. Since the insurance covers the full $1,500, Juanita pays $0 for the other vehicle's damage.
Calculating Juanita's Payment for Her Own Car's Damage Next, we calculate the amount Juanita must pay for her own car's damage. Since Juanita was at fault, her collision coverage applies. Her deductible is $500, so she pays $500, and the insurance covers the rest.
Calculating Total Payment by Juanita Finally, we calculate the total amount Juanita must pay. This includes the bodily injury payment and her collision deductible: 9603 + 500 + 0 = 10103
Final Answer Therefore, Juanita must pay a total of $10,103.
Examples
Car insurance liability coverage is crucial in case of an accident where you're at fault. It helps cover the costs of damages to the other party's vehicle and injuries. Understanding your policy's limits, like the 10/20/5 in Juanita's case, is essential to know how much the insurance will cover per person, per accident for injuries, and for property damage. This knowledge helps you prepare for potential out-of-pocket expenses and make informed decisions about your coverage needs, ensuring financial protection in unforeseen circumstances.
Juanita must pay a total of $10,103 for the damages resulting from the accident due to her liability coverage limits and deductibles. This includes $9,603 for injuries and $500 for her own car's damage. The other vehicle's damage is fully covered by her insurance, so she pays $0 for that.
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