3. Coverage on a One-Vehicle Accident. Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill’s vehicle suffered $17,500 in damage. The truck has a book value of $40,000. Bill carried collision insurance with a $500 deductible. How much will Bill be reimbursed by his policy?

The answer is $17,000

Explanation:

From the question given, we recall the following:

Bill vehicle suffered damages of =$17,500

The truck book value is = $40,000

Bill carried collision insurance with a = $500

Then,

The Amount to be reimbursed = Damages-Deductible amount

17,500-500 = $17,000

Therefore, the amount bill we be reimbursed by his policy is $17,000

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