Question

State Farm State Farm Fire and Casualty Company 11350 Johns Creek Parkway Duluth, GA 30098-0001 AT2 Matt & Sarah Justice 123 GetTheW St. Atlanta, GA 30306 YEAR 2007 NAMED INSURED SYMBOLS A DO NOT PAY PREMIUMS SHOWN ON THIS PAGE. IF AN AMOUNT IS DUE, THEN A SEPARATE STATEMENT IS ENCLOSED. YOUR CAR C D G H JINA M R1 U MAKE TOYOTA MODEL CAMRY COVERAGE & LIMITS 11-2097-4 P Liability Coverage Bodily Injury Limits Each Person, Each Accident A $100,000 $300,000 Property Damage Limit Each Accident $100,000 Medical Payments Coverage Limit- Each Person $1.000 BODY STYLE 4DR Comprehensive Coverage - $200 Deductible Collision Coverage - $1,000 Deductible Emergency Road Service Coverage Car Rental and Travel Expenses Coverage Limit- Car Rental Expense Each Day. Each Loss 80% menntunar $1.000 Uninsured Motor Vehicle Coverage (Difference-In-Limits) Bodily Injury Limits Each Person, Each Accident $50,000 $100,000 Property Damage Limit ($250 Deductible) Each Accident $50.000 Total premium for JUL 21 2017 to JAN 16 2018. 23311-4-P FIRE OVL DECLARATIONS PAGE AGENT POLICY NUMBER 35 5055-A POLICY PERIOD JUL 21 2017 to JAN 16 2018 12:01 A.M. Standard Time PHONE: (770) VEHICLE ID. NUMBER 4T1B PREMIUMS 603011H300 $544.58 $54.55 $66.98 $193.70 $4.39 $27.07 $99.19 $990.46 CLASS PAGE 1 OF 2 This is not a bill.
An uninsured motorist accelerates into the back of this Toyota Camry when it is stopped at a red light. The accident causes $1,000 of damage to the policyholder’s car. How much will the policyholder’s insurance pay?


Responses

$99.19
$99.19

$750
$750

$1000
$1000

$0

Answer 1

$750

Explanation: The policy’s Uninsured Motorist Property Damage applies (limit $50,000) with a $250 deductible. $1,000 damage − $250 deductible = $750. (Collision has a $1,000 deductible, which would yield $0.)