My question is why does this pay more than the maximum of 10,000?
Your answer : 10000
The correct answer:
$10,400
The Question:
Pete has a Personal Auto Policy with basic PIP. Pete driving his car takes his son, Joe, and his son’s friend, Jim, on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8,000 in injuries, Joe suffers $5,000 in injuries, and Jim suffers $6,000 in injuries. How much will Pete's PIP pay for all injuries?
ahhhh per person, now that makes sense. Thank you
If three individuals are involved in the accident, why aren't all 3 covered?
You calculated the coverage for Pete and Joe and added it together to get the answer (6.4k + 4k = 10.4k)
But why didn't we take into account the cost of Jim's injuries? 6,000 x 80% = $4,800.
So wouldn't the total cost be 6,4000 + 4,000 + 4,800, to = $15,200 in coverage?
Can someone help clear this up? Thank you.
Ah, nevermind. I didn't read the question properly. I'll clarify for any of those who may still be unsure.
Jim is excluded under Pete's PIP because he is not a family member and/or living with Pete. Therefore, he is not covered under Pete's PIP.