29. rocco causes an auto accident on a residential street. he has liability coverage only. he causes $7000…
29. rocco causes an auto accident on a residential street. he has liability coverage only. he causes $7000 in damage to someone elses car, $2000 in damage to his own car, and has a maximum coverage limit of $10,000. how much will insurance pay toward fixing roccos car? explain.
Answer
Answer:
$0
Brief Explanations:
Liability insurance only covers damage that the policyholder causes to other people or their property, not damage to the policyholder's own vehicle. Since Rocco only has liability coverage, his insurance will not pay anything to fix his $2000 in own-car damages. The $7000 in damage to the other car is covered under his liability limit, but this does not apply to his own vehicle.