Question

State Farm
State Farm Fire and Casualty Company
AT? NAMED NSURED
Matt & Sarah Justice
123 Get The W St.
Atlanta, GA 30306
11-2097-4 P
201A BECLARATIONS PAGE
FIRE OVL
PAGE 1 OF 2
POLICY NUMBER 35 5055-A
PoPEROaL 2 01710 JAN 16 2018
AGENT
PHONE: (770)
DON APAN IS UR NO RATATE ATATEMENT IS ENCLOSED.
YOUR CAR
YEAR
2007
MAKE TOYOTA
MODEL CAMRY
BODY STYLE
4DR
SYMBOLS
COVERAGE & LIMITS
Liabilty Coverage
Bodily Injury Limks
Each Person,
Each Acoident
$100,000
$300,000
Property Damage Limit
Each Accident
$100,000
Medical Payments Coverage
Limit - Each Person
31.00U
Comprehensive Coverage - $200 Deductiblo
Collision Goverage - $1,000 Deductible
Emergency Road Service Coverage
Car Rental and Travel Expenses Coverage
Limit - Car Rental Expense
Each Day.
Each Loss
80%
$1,000
Uninsured Motor Vehicle Coverage (Difference-In-Limts)
Bodily Injury Limts
Each Person,
$50,000
Each Accident
$100,000
Property Damage Limit ($250 Deductible)
Each Accident
$50,000
Total premium for JUL 21 2017 to JAN 16 2018.
VEHICLE ID. NUMBER 4T1B
CLASS
603011H300
PREMIUMS
$544.58
$54.55
$66.98
$193.70
$4.39
$27.07
$99.19
$990.46
This is not a bill,
The policyholder hit another vehicle as he swerved to avoid a hubcap lying in the middle of the road. In this two-car accident, the other driver’s car sustained $3,500 in damage. This was the policyholder’s first accident. Based on his auto policy, how much of the costs will the insurance policy cover?
Responses

$3,500
$3,500

$1000
$1000

$2,500
$2,500

$0

Answer 1

$3,500

Explanation: The damage to the other driver’s car is third‑party property damage. The policy’s Property Damage Liability limit is $100,000 per accident and liability coverage has no deductible, so the insurer would pay the $3,500. (Collision/comprehensive deductibles apply to the insured’s own vehicle, not to third‑party damage.)