What amount will the insurance company pay Mr. York for his stolen pickup truck and tools after the deductibles?

• A. 17,800
• B. 18,800
• C. 19,050
• D. 20,000

Answer: (B)

To determine the amount the insurance company will pay Mr. York for his stolen pickup truck and tools after deductibles, we first need to understand how insurance payouts typically work in cases of theft.

When a vehicle and its contents are stolen, the insurance company usually assesses the value of the vehicle and the lost tools at the time of the theft. If Mr. York had coverage for both the pickup truck and the tools, the insurer would calculate the total replacement cost or actual cash value of these items.

After calculating this total amount, the insurance company would subtract any deductibles that apply to the policy. A deductible is the amount that the insured party must pay out of pocket before the insurance coverage kicks in.

In this scenario, assuming that the total value of the pickup truck and tools before deductibles is $20,000, and there’s a deductible of $1,200, the calculation would be as follows:

Total value ($20,000) minus deductible ($1,200) equals the insurance payout.

So:

$20,000 - $1,200 = $18,800.

This outcome aligns with the provided answer, indicating that Mr. York will receive $18,800 from the insurance company after deductibles. This mathematical deduction