Explain personal automobile policy

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Reference no: EM13215478

David Salter has a personal automobile policy(PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance policy cover in each of the following situations? Will he have any out-of -pocket cost?a.David loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car.

b. David runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each.

c. David's 18-year-old son borrows his car. He backs into a telephone pole and causes $450 damage to the car

Reference no: EM13215478

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