Question

The most an insurer will pay for auto physical damage losses is:

a. The limit stated in the declarations.
b. The original cost of the auto.
c. The actual cash value or the cost to repair or replace the auto.
d. The market value of the auto.

Answer 1

The most an insurer will pay for auto physical damage losses is the actual cash value or the cost to repair or replace the auto. Correct option is c)

Step-by-step explanation:

The most an insurer will pay for auto physical damage losses is c. The actual cash value or the cost to repair or replace the auto. This means that the insurer will cover the cost to repair or replace the damaged vehicle up to its actual cash value. The limit stated in the declarations, the original cost of the auto, and the market value of the auto are not the determining factors for the amount the insurer will pay for auto physical damage losses.