Cassie has Missouri's minimum level of liability coverage and a deductible of $500. 

She doesn't stop in time at a red light and hits the car in front of her. There are no injuries, but the other car's damage is $3,500 and damage to her car is $1,800.

•What type of coverage pays for the other car? How much? 

•What type of coverage pays for Cassie's car? How much?

•In total, how much does the insurance company pay for this accident?

•In total, how much does Cassie pay for this accident?

•What will be the effect of this accident on Cassie's insurance rates?

Jake has Missouri's minimum level of liability coverage and a deductible of $500. 

He hits another driver and injures them significantly. The case goes to trial and there is a verdict to compensate the injured for $78,000. The other driver's car is totaled. It is valued at $36,000.

•How much does the insurance company pay for the driver's injuries? 

•How much does Jake pay?

•How much does the insurance company pay for the driver's vehicle? 

•How much does Jake pay?

•What are some other things Jake could have done with this money?

•What actions Jake could take to reduce this risk in the future?

Answer rating: 100% (QA)

Cassies Accident The type of coverage that pays for the other car is property damage liability cover... View the full answer