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John has purchased collision insurance with a $100-deductible clause, and automobile medical payments insurance in the amount of $1,000. In an accident in which John is at fault, he incurs injuries for a total expense of $1,100. Also, $900 worth of damage is done to Sam's car. How much does the insurance company pay Sam?

Answer :

The insurance company pays John for the expenses of his injuries and repair of the car. For the injuries, he gets $1000 from the insurance company. For the car repair, he gets $900 - $100 = $800(subtracting deductible clause). All in all, he gets a total of $1800.


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scme1702
The $100 clause will be deducted as Sam was at fault. Thus, the insurance company will cover only $1,000 out of the $1,100 medical expenses.

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