In: Accounting
50. Sally was driving her own car and collided with a pick up truck, Sally sustain a $129000 in injuries in her passengers sustained $11000 in injury. If her coverage was 100/300/50 what are the total medical expenses the insurance company will pay for this accident?
The policy states that a maximum coverage for Injury for one person is $100,000 and accumulated coverage for personal injury is up to a threshold of $300,000 along with property damages up to $50,000.
In the given case, Sally sustain a $129,000 as injuries but only $100,000 is allowed plus her passengers sustained $11,000 injury is considered within the accumulated threshold of $300,000.
Therefore, under coverage 100/300/50, the total medical expenses the insurance company will pay for this accident is $111,000 ($100,000 + $11,000).