You had a car accident and needed another car immediately because you rolled out any other forms of transportation. A car dealer offers you $3,000 for your damaged car "as is" also, your insurance company estimates that there is $3,000 in damage to your car. The insurance company car fix the car right away in a repair shop belonging to this company. Because you have collision insurance with 1,000 deductibility provision, the insurance company mails you a check with only $2,000. The odometer reading on your damaged car is 48,000 KM. What should you do? Use seven-step procedure to analyze your situation. Additional information : -You have $8,000 in savings. - you can buy a newer car for $10,000 with odometer reading of 28,000 КМ. - after repairing the damage car, it can be sold for $5,000 - a discount repair shop charges $1,700 and requires 1 month. - a car rental for one month is $400.

You had a car accident and needed another car immediately because you rolled out any other forms of transportation. A car dealer offers you $3,000 for your damaged car "as is" also, your insurance company estimates that there is $3,000 in damage to your car. The insurance company car fix the car right away in a repair shop belonging to this company. Because you have collision insurance with 1,000 deductibility provision, the insurance company mails you a check with only $2,000. The odometer reading on your damaged car is 48,000 KM. What should you do? Use seven-step procedure to analyze your situation. Additional information : -You have $8,000 in savings. - you can buy a newer car for $10,000 with odometer reading of 28,000 КМ. - after repairing the damage car, it can be sold for $5,000 - a discount repair shop charges $1,700 and requires 1 month. - a car rental for one month is $400.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter10: Protecting Your Property

Section: Chapter Questions

Problem 6FPE

See similar textbooks

Similar questions

You damage your car in an accident that is covered by your collision insurance, which has a $200 deductible. If the damage to your car costs $1,200, the insurance company would pay ___.
please consider the following questions :Student A buy a traffic insurance and the ferasures are as following.if the driver knocks down someone else on purpose, no payment.there is a limit of max payment of $6,000.any fees happened under $800 should be covered by the investors.the investor also needs to pay 20% out of his own pocket. student A causes an accident and a loss of $12,000. How much can he claim from the insurance company?
Zachary Lee has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damageliability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs?a. Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car.b. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each.c. Zachary’s 18-year-old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
You are responsible for an automobile accident. Use the information below to determine: the total amount your liability insurance will pay for the accident the total amount your collision insurance will pay for the accident the amount of additional damages you are responsible for as a result of the accident You and the driver of the other car were the only people involved in the accident. There were no injuries from the accident. You have a 50/100/50 liability insurance policy with no deductible You have collision insurance with a deductible of $500 The other car was valued at $25,000 and requires $10,000 in repairs Your car was valued at $20,000 and requires $15,000 in repairs
You carry 25/50/25 coverage on your automobile. You are involved in an accident in which you are eventually held responsible for the following damages: other driver, $25,000; passenger 1, $20,000; passenger 2, $9,000; other car, $11,000. How much is left for you to pay after your insurance company has met its obligations under your policy? 0 bodily injury; 0 property damage 0 bodily injury; $4,000 property damage $4,000 bodily injury; 0 property damage $9,000 bodily injury; $4,000 property damage
Imagine you are working for an insurance companies. An individual is calming 10,000$ worth of stolen objects on an insurance claim, but you suspect he may only as suffer a loss of 6,000$. You have the ability to offer a settlement. If accepted, the claim is close and the individual receives such payment. If rejected, a court will decide the payment is 6,000$ or 10,000$. If the individual really lost 10,000$, there is 60% chance the court will decide in his favor. If the individual only lost 6,000$, there is 60% chance the court will only grant him that amount. Propose a settlement amount that will allow you to figure out if the individual is lying or not. Between 7600 and 8400
You are responsible for an automobile accident. Use the information below to determine: the total amount your liability insurance will pay for the accident the total amount your collision insurance will pay for the accident the amount of additional damages you are esponsible for as a result of the accident You and the driver of the other car were the only people involved in the accident. There were no injuries from the accident. You have a 50/100/50 liability insurance policy with no deductible You have collision insurance with a deductible of $500 The other car was valued at $25,000 and requires $10,000 in repairs Your car was valued at $20,000 and requires $15,000 in repairs
If you had 10/20/5 coverage and were in a car accident causing injury to three people with injuries totaling $13,200, $8,200, and $6,200. (Leave no cells blank - be certain to enter "0" wherever required.) a. How much would you have to pay out of pocket? Out of pocket: b. If you had 50/100/50 coverage for the same scenario, how much would you have to pay out of pocket? Out of pocket: c. What is the difference? Difference:
Your insured has an O.A.P. 1 Owner's Policy with $1,000,000 Liability, standard Accident Benefits and All Perils coverage. Near Sudbury, Ontario he/she rear-ends another automobile and is found liable for the accident. Your insured's vehicle is a total loss. Your insured is convicted of impaired driving. Which one (1) of these statements is true? Insured's policy will pay - for the damage to the third party vehicle and subrogate against your insured. nothing for the damage to your insured's car because he/she was impaired. Third party damage will be paid by third party's insurer. for the damage to the third party vehicle with no right to for the damage to the third party vehicle with no right to subrogate against your insured. for your insured's collision loss only.
Zachary Lee has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily injury liability, $50,000 for property damage liability, $3,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "0" wherever required. Zachary loses control and skids on ice, running into a parked car and causing $2,645 damage to the unoccupied vehicle and $4,500 damage to his own car. Total paid by the insurance company $ Zachary's out-of-pocket costs $ Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $50,000 each. Total paid by the insurance company $ Zachary's out-of-pocket costs (for both victims) $ Zachary's 18-year-old son borrows his car. He backs into…
Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $18,000 in damage. The truck has a book value of $38,000. Bill carried collision insurance with a $400 deductible. How much will Bill be reimbursed by his policy? Round your answer to the nearest dollar. $
John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. John got in an accident while borrowing Katie's car and incurred a $2,500 covered collision loss. John's policy will pay s of the covered loss. Katie's policy will pay $ IMPORTANT: Your answers should be rounded to the nearest integer and should NOT include symbols ('S' or ).