Gina has 250/500/50 liability insurance and $50,000 PIP insurance. She changes lanes too quickly, hits the metal guard rail, and then hits a tour bus. Four people are seriously hurt and sue her. Twenty others have minor injuries. Gina's boyfriend, who was in her car, was also hurt.
Historical Prices
Age Value ($)
0 ...................................... 32,000
1 ...................................... 29,100
2 ...................................... 26,500
3 ...................................... 24,120
4 ...................................... 21,950
5 ...................................... 20,000
6 ...................................... 18,100
7 ...................................... 16,500
8 ...................................... 15,000
9 ...................................... 13,700
10 ...................................... 12,500
a. The guard rail will cost $2,000 to replace. Gina also did $9,700 worth of damage to the bus. What insurance will cover this, and how much will the company pay?
b. The bus driver severed his hand and cannot drive a bus again. He sues for $2,500,000 and is awarded $1,750,000 in court. What type of insurance covers this? How much will the insurance company pay?
c. The bus driver (from part b) had medical bills totaling $90,000 from an operation after the accident. What type of insurance covers this, and how much will the insurance company pay?
d. Gina's boyfriend is hurt and requires $19,000 worth of medical attention. What insurance covers this, and how much will the company pay?