David Salter has a 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.
a. How much will his insurance cover in the following situation?
b. Will he have any out-of-pocket costs?
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.