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Coverage on a One-Vehicle Accident. Bill Converse of Rexburg, Idaho, recently had his truck slide off...

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?

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Answer #1

Answer: $17,000

Explanation:

Amount to be reimbursed = Damages-Deductible amount = 17500-500 = $17,000

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