If an insured experiences $3,000 fire damage to their vehicle under comprehensive coverage with a $500 deductible, how much will the insurer pay?

In this scenario, the insured has comprehensive coverage, which provides protection against various risks including fire damage to the vehicle. The total damage amount is $3,000, and there is a deductible of $500. The deductible is the portion of the loss that the insured is responsible for paying out of pocket before the insurance company contributes.

To calculate how much the insurer will pay, the deductible needs to be subtracted from the total damage amount. Here’s the calculation:

Total damage: $3,000

Minus deductible: $500

Amount paid by the insurer: $3,000 - $500 = $2,500

Therefore, the insurer will pay $2,500 toward the fire damage claim after the deductible has been applied. Understanding how deductibles work is crucial for anyone in the field of automobile insurance, as it directly impacts the amount an insurer will reimburse the insured after a claim.