While attending classes at her college, Lisa parks her Corvette on the street an
ID: 2417940 • Letter: W
Question
While attending classes at her college, Lisa parks her Corvette on the street and locks it. When she returns, it is gone. She reports its loss to her insurer and notifies the police immediately. Because she must commute to school and to work, she rents a car for $180 per week, or $28 per day for any part of a week. Twenty-three days after her car disappeared, it is recovered. It has been driven over 12,000 miles, its right rear fender has been destroyed in an accident, and the interior has been vandalized. The low estimate for repair of the exterior and interior damage is $23,000. The actual cash value of her car is $16,000. Lisa has a PAP with other-than-collision coverage and a $200 deductible. Explain her coverage to her, noting what she can expect to recover from her insurer, and why.
Explanation / Answer
The maximun cash value of car is $ 16,000 which LISA can claim, Also LISa would be able to claim the rent of 23 days from the insurer.
3 full weeks = 180 * 3 = $540
and for 2 days extra = 28 * 2 = 56
= $596 car rental
As the collsion is not covered she wont be getting the claim for right fender which has been destroyed.
So she would be getting $16,000 - the damages on the right fender - 200 which is deductible + 596 which is car rental charges borne by LISA.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.