Robert’s Policy : $1,000,000 T/P Liability

DCPD – $500 deductible

Collision Coverage - $2000 deductible

Rita’s Policy : $2,000,000 T/P Liability

DCPD – No deductible

Collision Coverage - $1000 deductible

CASE:

Rita and Robert were involved in a motor vehicle accident. Robert, was 75% at fault for the accident. Explain how you will settle the following losses. You have to show all calculations and amounts to be paid out by each parties insurer.

(A) Rita had vehicle damage in the amount of $8575. While her car was being repaired, she had to rent a car for 30 days at $40 per day while her car was being repaired. Unfortunately, Rita at the time of the accident, was carrying groceries in the car , worth $438.00 which were destroyed in the motor vehicle accident . Rita was not injured in the accident.