4. Computing your lfability-An auto insurance example Although car insurance is legally required by alf states, the coverage provided by different policles can vary dramatically, such that even an "Insured" motorist can end up paying large amounts of moncy out-of-pocket. Consider the following example involving Jack, who has a family auto palicy (Fap) that provides liablity coverage with limits of 15/30/15, no medical payment insurance, and uninsured and underinsured motorist coverage with fimits of 1/2. He has collision and comprehensive auto insurance, both with a deductible of $100. Suppose one day Jack rear-ends a truck when it stops while he is looking down at his radio, Fortunately, he is not badly injured, but the medical bill for his hospital examination nonetheless amounts to $484. The driver of the truck, a woman named Caroline, was unharmed but nonetheless required a hospital examination costing $864. Caroline's insurance company successfully filed a claim against Jack, exercising subrogation rights. Coverage A of Jack's plan will reimburse him with for Caroline's medical bills. Jack's medical blifs are Jack's car required only a new bumper, costing $584 to replace. Caroline's truck required $3,650 in repairs, and its trailer contained a racehorse valued at $18,000 that fell and broke its legs upon the impacti 3 ack is therefore liable for the full value of the horse. Jack's iiablity coverage also will reimburse him for up to $ in property damage, so he is responsible for paying pocket in property. liability damages. Which of the following is true regarding the damage to his own car? It will be reimbursed up to the difference between his liability coverage and the damage to other property. It is not covered under his policy. It wil be reimbursed fully, minus the $100 deductible