Question

Johann maintains a $75,000 insurance policy on his boat. He pays $50 per month in premiums and his deductible is $2,500. If he is involved in an accident and makes a claim of $15,000 on the policy, how much will his insurance company pay?

Answer 1

Johann maintains a $75,000 insurance policy on his boat. He pays $50 per month in premiums and his deductible is $2,500. If he is involved in an accident and makes a claim of $15,000 on the policy, how much will his insurance company pay?

He will be paid
`15000-2500=12500` because deductible is $2,500

So, answer is $12500

Answer 2

The deductible is the amount of money that the insurance company will subtract from the claim. For this case, he needs to pay 2,500 and the insurance company will pay 500. Hope this answers the question. Have a nice day.