Question

ova v. math of finance se ar insurance understanding deductibles and limits insurance claims the table shows deductibles and limits for certain claims. scenario deductible coverage limit minor accident $500 $5,000 stolen car $1,000 $20,000 vandalized vehicle $250 $2,000 windshield damage $100 $1,500 car flood damage $500 $10,000 collision with animal $1,000 $7,000 stolen car stereo $500 $3,000 tire damage $250 $2,000 car fire $500 $8,000 hail damage $500 $5,000 zanes car was stolen from his driveway. the car was valued at $15,000. how much will the insurance cover? $14,000 $16,000 $15,000 $1,000

Explanation:

Step1: Identify the scenario

The scenario is "Stolen car" since Zane's car was stolen.

Step2: Find deductible and car value

For "Stolen car", deductible is \$1,000, car value is \$15,000.

Step3: Calculate insurance coverage

Insurance coverage = Car value - Deductible = \$15,000 - \$1,000 = \$14,000. Also, check coverage limit (\$20,000) which is higher than \$14,000, so it's valid.

Answer:

\$14,000