David Salter has a personal automobile policy (PAP) with coverage of $ 25,000/$ 50,000 for bodily injury liability, $ 25,000 for property damage liability, $ 5,000 for medical payments, and a $ 500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out- of- pocket costs?
a. David loses control and skids on ice, running into a parked car and causing $ 3,785 damage to the unoccupied vehicle and $ 2,350 damage to his own car.
b. David runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $ 30,000 each.
c. David’s 18- year- old son borrows his car. He backs into a telephone pole and causes $ 450 damage to the car.