Bill buckely has split-limit 125 /250 /50 automobile liability insurance on his 2008 subaru. driving home from work in a snowstorm, he hit a mercedes, slid into a guardrail, and knocked down a telephone pole. damages to the mercedes, the guardrail, and the telephone pole were $37 comma 849 , $9 comma 761 , and $17 comma 814 respectively. how much will bill's insurance company pay? how much will bill be required to pay directly?

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Business

Valentino Keith

9 October, 01:35

Bill buckely has split-limit 125 /250 /50 automobile liability insurance on his 2008 subaru. driving home from work in a snowstorm, he hit a mercedes, slid into a guardrail, and knocked down a telephone pole. damages to the mercedes, the guardrail, and the telephone pole were $37 comma 849 , $9 comma 761 , and $17 comma 814 respectively. how much will bill's insurance company pay? how much will bill be required to pay directly?

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Answers (1)

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Rey Thomas · Answer 1

how much will bill's insurance company pay?

$50,000

how much will bill be required to pay directly?

$15,424

Explanation:

The split limits are used by insurance companies to separate the amounts that they cover per accident:

first limit is the maximum paid per person injured = $125,000 second limit is the maximum paid to all injured people = $250,000 third limit is the maximum paid for property damages = $50,000

the damages caused by this accident were:

Mercedes Benz car = $37,849 guardrail = $9,761 telephone pole = $17,814 total damages = $65,424

Since Bill's limit for property damage is $50,000, he will need to pay $65,424 - $50,000 = $15,424