jerry has an insurance policy with a premium of $150 per month. in june, he causes an accident and receives a bill with a total cost of $6000. his deductible is $1500, and his coverage limit is $10,000. how much money will jerry have to pay for the accident’s bill?
How much money will Jerry have to pay for the accident’s bill?
Answer:
To determine how much money Jerry will have to pay for the accident’s bill, we need to consider the insurance policy details.
Given that Jerry’s total bill for the accident is $6000, his insurance coverage will come into play to cover a portion of this cost.
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Deductible: Jerry’s policy has a deductible of $1500. This means that he will have to pay this amount out of pocket before the insurance coverage kicks in.
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Coverage Limit: Jerry’s insurance policy has a coverage limit of $10,000. This is the maximum amount the insurance will pay for the damages.
Since the total bill is $6000 and Jerry’s deductible is $1500, he will first need to pay the deductible amount. After that, the insurance will cover the rest, up to the coverage limit.
Here’s the breakdown:
- Jerry will pay the $1500 deductible.
- The remaining bill after the deductible is $6000 - $1500 = $4500.
- Since Jerry’s coverage limit is $10,000 and the remaining bill is lower than this limit, the insurance will cover the full $4500.
Therefore, Jerry will have to pay the $1500 deductible, and the insurance will cover the remaining $4500 of the accident’s bill.
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