"Vicky has a comprehensive auto insurance policy with a $4,400 deductible, with a 100/0 copay and a $4,400 ou of-pocket limit. Last week, their car was crushed by a falling tree. This cost them $5,800 to replace the car. How much of this expense will they havve to pay out of pocket?"

"Vicky has a comprehensive auto insurance policy with a $4,400 deductible, with a 100/0 copay and a $4,400 ou of-pocket limit. Last week, their car was crushed by a falling tree. This cost them $5,800 to replace the car. How much of this expense will they havve to pay out of pocket?"

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 28P

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Concept explainers

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.

Question

"Vicky has a comprehensive auto insurance policy with a $4,400 deductible, with a 100/0 copay and a $4,400 out-
of-pocket limit. Last week, their car was crushed by a falling tree. This cost them $5,800 to replace the car. How
much of this expense will they havve to pay out of pocket?"

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