Problem regarding the property damage


Question: After a few days, Alex's insurance company contacts him, and he learns that he was at fault. They provide him with a list of expenses below. Alex has the following limits on his policy 50/100/25. He also has $5,000 in PIP coverage, full collision/comprehensive coverage, and uninsured motorist protection. His deductible is $1,000, he does not have gap insurance and owes $31,000 on the Mustang. List of Damage/Injury Amount A. Part of policy that covers B. Maximum Amount Covered C. Actual Amount Covered (Insurance) C. Actual Amount Covered (Alex) Alex's broken arm $5,800 100 100,000 5,800 Driver in other car's injuries $30,000 50 50,000 30,000 Passenger 1 in other car's injuries $65,000 50 50,000 Passenger 2 in other car's injuries $20,000 50 50,000 Property Damage to Alex's Car Totaled ($27,000 value) 25 25,000 26,000 1,000 Property Damage to other's car $18,000 25 25,000 25,000 0 Phillips 66' Gas Pump repair $15,000 25 25,000

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Accounting Basics: Problem regarding the property damage
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