Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $17,800 in damage. The truck has a book value of $45,000. Bill carried collision insurance with a $400 deductible. How much will Bill be reimbursed by his policy

$17,400

Explanation:

Deductible in Insurance is the level of an amount of which the loss payable must reach before the insurance company will participate in compensating for the full sum assured. Any loss payable (claim) below the Deductible amount will not be compensated by the Insurance company and if it exceeds the deductible, deductible amount will be deducted from the claim amount

Here, there is $400 deductible. Amount to be reimbursed = Damages -Deductible amount = $17,800 - $400 = $17,400

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