Personal automobile policy coverage. Marc Rose has a PAP with coverage of25,000/50,000 for bodily injury liability,25,000 for property damage liability,5,000 for medical payments, and a500 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. Marc loses control and skids on ice, running into a parked car and causing3,785 damage to the unoccupied vehicle and2,350 damage to his own car.
b. Marc runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for30,000 each.
c. Marc’s 18-year-old son borrows his car. He backs into a telephone pole and causes450 damage to the car.
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