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Question

Tia has the following insurance coverages on her car:

Comprehensive physical damage

Bodily injury and property liability (100/200/25)

Collision ($250 deductible)

As a result of an accident in which she was negligent, the driver of the other car was awarded$9,800 for injuries and $2,100 in damages to his car. Tia 's auto was damaged at a cost of$820. Her medical bills were $135. How much did the insurer have to pay in claims as a result of the accident? What is the maximum the policy would pay for injuries to the other driver?

Solution

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In this exercise, we are asked to calculate how much the insurer will pay and how much the insurance company will cover.

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