Simon let Garfunkel borrow his year-old car for a trip to a Phish concert. The c

Question

Simon let Garfunkel borrow his year-old car for a trip to a Phish concert. The car, a Tesla, is worth $150,000 new and $130,000 after one year. Garfunkel ran over an award-winning breeding female poodle recently purchased by its owner for $150,000. Simon has auto insurance with liability limits of $100,000/$200,000/$100,000, comprehensive and collision coverage and a deductible of $5,000. Garfunkel has an auto policy with the same liability limits, comprehensive and collision coverage, and a deductible of $2,500. Whose policy(ies) will pay for the loss of the pet and how much?



a. Simon’s policy pays up to the policy limit less the deductible; Garfunkel’s policy pays the remainder less the deductible

b. Simon’s policy pays for the loss less the deductible

c. Simon’s policy pays up to the policy limit with no deductible; Garfunkel’s policy pays the remainder with no deductible

d. Garfunkel’s policy pays for the loss with no deductible

e. Simon’s policy pays for the entire loss with no deductible

Explanation / Answer

a) The owner of the car pays first.

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