Question

103. Norm has a Personal Auto Policy with both comprehensive (other than collision) and collision coverage. His car is stolen and recovered five days later. If Norm claims transportation expenses of $20 per day, how much will his policy pay?

(Choose from the following options)
1. $100
2. $45
3. $60
4. $75

Answer 1

Norm's policy will pay $100 for his transportation expenses.

Step-by-step explanation:

Norm's personal auto policy includes comprehensive (other than collision) and collision coverage. When his car is stolen and recovered, he can claim transportation expenses. Norm claims $20 per day for 5 days, which amounts to $100. His policy will pay the claimed amount of $100.

The Personal Auto Policy will pay Norm for his transportation expenses while his car was stolen. Assuming a delay period is not applied to coverage, at $20 per day for five days, his policy will reimburse him $100 in total. However, policies often include a waiting period before this coverage begins, typically 24 to 48 hours. If Norm's policy has a standard 48-hour waiting period, the policy would only cover three days, so he would receive $60. Without explicit information on the waiting period for Norm's policy, both possibilities could be considered.