Question

While attending classes at college, Chuck parks his car on the street and locks it. When he returns, it is gone. He reports its loss to his insurer and notifies the police immediately. Because he must commute to school and to work, he rents a car for $180 per week, or $28 per day for any part of a week. Twenty-three days after his car disappeared, it is recovered. It has been driven over 12,000 miles, its right rear fender has been destroyed in an accident, and the interior has been vandalized. The low estimate for repair of the exterior and interior damage is $23,000. The actual cash value of his car is $16,000. Chuck has a PAP with other-than-collision coverage and a $200 deductible. Explain Chuck’s coverage to him, noting what he can expect to recover from her insurer, and why.

Answer 1

ANSWER

The maximum cash value of car is $ 16,000 which Chuck can claim, Also Chuck would be able to claim the rent of 23 days from the insurer.

3 full weeks = 180 * 3 = $540 and for 2 days extra = 28 * 2 = 56

= $540+$56

= $596 car rental

As the collision is not covered he wont be getting the claim for right fender which has been destroyed.

So he would be getting $16,000 - the damages on the right fender - 200 which is deductible + 596 which is car rental charges borne by Chuck.