automobile insurance

automobile insurance

by Kenneth Alay -
Number of replies: 4

can someone plz help me with the solution for this question?

Pete has a personal auto policy with a basic PIP. Pete is driving his car and Pete takes his son, Jim and his son's friend, Joe on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8000 in injuries, Jim suffers $5000 in injuries, and Joe suffers $6000 in injuries. How much will Pete's PIP pay for all the injuries?

In reply to Kenneth Alay

Re: automobile insurance

by Jan Bradburn- -

Kenneth,

Only Pete and his son, Jim are able to use Pete's PIP.

Pete - $8000 X 80% = $6400

Jim - $5000 X 80% = $4000

$6400 + $4000 = $10,400

Jim's friend cannot use Pete's PIP because he is not a resident relative.

Jan

In reply to Jan Bradburn-

Re: automobile insurance

by Deleted user -

Hi Jan

How basic PIP breaking threshold i.e. 10000/-

In reply to Deleted user

Re: automobile insurance

by Jan Bradburn- -

Aijaz,

I believe your question is based on this previous question?  If that's not correct, please let me know.

Only Pete and his son, Jim are able to use Pete's PIP.

Pete - $8000 X 80% = $6400

Jim - $5000 X 80% = $4000

$6400 + $4000 = $10,400

This does not "break the PIP threshold".  The $10,000 PIP limit applies person/per accident.

Jan

In reply to Jan Bradburn-

Re: automobile insurance

by Deleted user -

Thanks Jan

Yes this is the same question

So these two have total PIP limit of 20000/-