calculating insurance costs\npolicy 2\npremium: $1,200 per year\ndeductible: $300\nliability: $100,000 per…

calculating insurance costs\npolicy 2\npremium: $1,200 per year\ndeductible: $300\nliability: $100,000 per person/$300,000 per accident\ncomprehensive: $50,000\ncollision: $50,000\npolicy 3\npremium: $900 per year\ndeductible: $750\nliability: $75,000 per person/$150,000 per accident\ncomprehensive: $35,000\ncollision: $35,000\nif a person has policy 2 and files a claim for $2,000 worth of repairs, how much will the insurance company cover?\n$2,000\n$1,700\n$1,500\n$900

calculating insurance costs\npolicy 2\npremium: $1,200 per year\ndeductible: $300\nliability: $100,000 per person/$300,000 per accident\ncomprehensive: $50,000\ncollision: $50,000\npolicy 3\npremium: $900 per year\ndeductible: $750\nliability: $75,000 per person/$150,000 per accident\ncomprehensive: $35,000\ncollision: $35,000\nif a person has policy 2 and files a claim for $2,000 worth of repairs, how much will the insurance company cover?\n$2,000\n$1,700\n$1,500\n$900

Answer

Explanation:

Step1: Recall insurance - deductible concept

The insurance company pays the claim amount minus the deductible.

Step2: Identify values

The claim amount is $2000 and the deductible for Policy 2 is $300.

Step3: Calculate coverage

$2000 - 300=1700$

Answer:

$1700$