Personal automobile policy coverage. Marc Rose has a PAP with coverage of 25,000/ 50,000 for bodily injury liability, 25,000 for property damage liability, 5,000 for medical payments, and a 500...


Personal automobile policy coverage. Marc Rose has a PAP with coverage of
25,000/50,000 for bodily injury liability,
25,000 for property damage liability,
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. Marc 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. Marc 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. Marc’s 18-year-old son borrows his car. He backs into a telephone pole and causes
450 damage to the car.



May 25, 2022
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