Answer to Question #101206 in Financial Math for Robert

Question

leslie has comprehensive insurance with a 500$ deductible on her van. On Halloween her van is vandalized, and the damages total $1,700. Leslie submits her claim to her insurance company.

A. How much does Leslie pay for the car?

B. How much does the insurance pay?

Answer 1

Given,

Deductible amount $=\$500$

Total Damage = $\$1700$

In the insurance, person can get the money for losses that occurred during an accident.

Deductible amount is the amount that the policy owner need to pay before the insurance policy pays any amount of money. After paying the deductible amount by the owner, the insurance company pays the rest of the amount for the damages.

A). Deductible amount

$$=\$500$$

So, Leslie need to pay $\$500$ for the damages.

B). The rest of the amount will be paid by the insurance company.

Amount paid by Insurance company

$$=\$1700 - \$500 = \$1200$$

Answer:

Leslie pays $500 and Insurance company pays $1200.