Question

automobile insurance coverage overview
the table outlines a range of scenarios commonly encountered by vehicle owners, detailing the insurance deductibles and the maximum coverage limits offered under each scenario.

scenario	deductible	coverage limit
stolen car	$1,500	$30,000
vandalized car	$300	$5,000
windshield damage	$400	$6,000
flood damage	$1,000	$20,000
collision with animal	$1,500	$25,000
stolen car stereo	$1,200	$18,000
tire damage	$300	$5,000
fire	$600	$10,000
hail damage	$700	$8,000

gracies car, valued at $28,000, is stolen.
what is the insurance payout, given the deductible and coverage limit?
$29,500
$26,500
$28,500
$30,000

Explanation:

Step1: Identify the scenario

The scenario is "Stolen Car", so we use the deductible and coverage limit for this scenario. The deductible is \$1,500 and the coverage limit is \$30,000.

Step2: Determine the payout

The car's value is \$28,000. To find the insurance payout, we subtract the deductible from the car's value (since the car's value is less than the coverage limit of \$30,000). So, \$28,000 - \$1,500 = \$26,500.

Answer:

\$26,500