PIP Coverage question

PIP Coverage question

by Percival Terry -
Number of replies: 1

Hello everyone,

Just wondering if anyone could help answer this question from Unit 3. The answer is $10,400, but I'm not understanding how.

Question:

Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and Pete takes his son, Jim and his and son’s friend, Joe, on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8,000 in injuries, Jim suffers $5,000 in injuries, and Joe suffers $6,000 in injuries. How much will Pete's PIP pay for all injuries?

 

In reply to Percival Terry

Re: PIP Coverage question

by Jan Bradburn- -

Hi Percival, 

Only Pete and his son are able to use Pete's PIP.  Joe, the son's friend, cannot use Pete's PIP to pay for his injuries.  

Pete - $8000 X 80% = $6400 and Jim (Pete's son) - $5000 X 80% = $4000

$6400 + $4000 = $10,400

I hope this helps.  Please let me know if you have other questions.

Jan