Question

Judy Atwood has 100/500/100 vehicle insurance. She has a $0 deductible on comprehensive and $1,000 deductible on collision. Judy crashed into another vehicle while speeding and was at fault. Sheila, Kathy, and Bob, the driver and passengers in the other vehicle, were injured. Sheila's medical care was $25,940, Kathy's medical care was $88,760, and Bob's medical expenses were $66,890. Their care required $26,380 to repair. Judy's vehicle had $6,620 in damages but she had no injuries. How much will the insurance company be responsible for paying and to whom? How much, if any, will Judy be responsible for paying?

Answer 1

As per the given information, we can conclude that

Judy’s insurance company will be responsible for paying up to $ 100,000 per person for personal injury involved in an accident.

The maximum amount payable by the insurance company for all personal injury is $ 500,000.

So, the company will be responsible for paying $ 25,940 for Sheila’s medical care, $ 88,760 for Kathy’s medical care, and $ 66,890 for Bob’s medical expenses.

Judy will not be liable for paying for any medical care since each individual claim is less than $ 100,000 and the total of the claims is less than $500,000.

The insurance company will also be responsible for paying $ 26,380 to repair Sheila’s car and $ 6,620 – $ 1,000 = $5,620 to repair Judy’s vehicle.

Judy will be responsible for paying amount of only $ 1,000 deductible for her car repairs

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