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?
Answer is 10,400. Someone please explain.
Only Pete and his son Joe's injuries would be covered. Jim would not be covered because they are out of state and his not a relative.
Therefore you'd take Pete & Joe's injuries, at total of 13,000 and PIP would pay 80%. Which equals 10,400.
Hope that helps.
Thank You
Jan,
If the PIP policy limit is $10,000 per person and per accident., How come the answer is $10,400?? The maximum per accident is not $10,000 then.
Thank you Jan but I'm confused, the questions is: How much will Pete's PIP pay for all injuries? It doesn't mention anything about his son's PIP policy. The correct answer should be $10,000 since that's the maximum per occurrence. Am I missinng something?
Please explain.
I understand that, but again, Pete's PIP coverage shouldn'nt pay more than the $10,000 since neither Pete nor his son died. Maximum amount paid is $10,000 for medical payments (per accident)...
I think the confusion comes from the limits. PIP only pays 80% of the medical bills up to 10,000 per person/per accident.