Question

70va v. math of finance sem
ar insurance
claudias car suffered damage in a minor accident. the collision coverage on the car has a $750 deductible and a limit of
$8, 000. the repair costs are estimated at $7, 678.
how much will claudias insurance cover?
$322
$6, 928
$8, 428
$7, 250

Explanation:

Step1: Understand Insurance Coverage

Insurance with a deductible means the insured pays the deductible, and the insurance covers the rest (up to the limit). Here, deductible is \$750, repair cost is \$7,678, and limit is \$8,000 (which is higher than repair cost, so limit doesn't affect here).

Step2: Calculate Coverage

To find the insurance coverage, subtract the deductible from the repair cost: \$7,678 - \$750 = \$6,928.

Answer:

\$6,928