Melvin has an auto insurance policy that includes both collision and comprehensive coverage. he has a $250 deductible on his collision coverage and a $100 deductible on his comprehensive coverage. his car has a book value of $7,500 when he is in a one-car accident with a tree. the car suffers damages of $5,000. how much will melvin's insurance company pay for this repair work?

The insurance company will cover $4,750 of the damages. The insurance company will take the deductable of $250 out of the money given to Melvin for repair work leaving him with $5,000 - $250 = $4,750

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chilljain33 chilljain33 · Answer 2 · 2022-05-10T13:32:23+02:00

The auto insurance policy of Melvin in case of collision will be covered up to an amount of $4750 by the insurer after the deduction for the repair work.

What is an insurance policy cover?

Insurance policy cover refers to the amount that is borne by the insurer in case of happenings of the events against which the user had been insured.

In Melvin's case, an amount of $250 is deductible for processing the claim for a collision repair costs cover. For the repairs of $5000, his insurance company will pay amounting to $4750, after deducting such $250.

Hence, it can be stated that Melvin's insurance company will pay him an amount of $4750 for the purpose of reimbursement of the collision repair cost covers as per the contract of his insurance policy.

Learn more about insurance policy cover here:

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