The total amount that the insurance company will pay is $5,750 for repairs as a result of Justin’s accident.
Both property damage and collision coverage will be utilized to pay the damages from Justin’s accident. The insurance will pay $4,500 under the property damage portion of his insurance to repair the parked car. It will pay this full amount because it is not subject to a deductible. The repair to Justin’s car is covered by the collision part of his insurance, so the insurance company will pay $1,250, which is the amount of the repair less his $500 deductible. The total that they will pay is $4,500 for the parked car + $1,250 for Justin’s car, for a total of $5,750.