Vehicle Insurance Scenario Worksheet

● Scenario Worksheet:
Directions: Determine what each person and each company will end up
paying.
Case #1 Case #2 Case #3

John & Jane Doe have the Sam & Ann Smith have the following Tom & Sue Jones has the following auto
following auto insurance: auto insurance: insurance:
Hometown Insurance Company C&C Insurance Company Duncan Insurance Company
Includes: Includes: Includes:

● $25,000 bodily injury ● $25,00 bodily injury per person
per person $50,000 $50,000 bodily injury per ● $100,00 bodily injury per person.
bodily injury per accident $25,000 property $300,000 bodily injury per accident.
accident $10,000 damage per accident $100,000 property damage per accident.
property damage per ● $1,000 Medical pay per person ● $50,000 uninsured motorist per person
accident ● $25,000 uninsured motorist per ● $100,000 uninsured motorist per
● $25,000 uninsured person accident.
motorist per person ● $50,000 uninsured motorist per ● Comprehensive ACV - $100 deductible
● $50,000 uninsured accident ● Collision ACV - $500 deductible.
motorist per accident ● $250,000 collision
SCENARIO:
On the way to the lake last weekend, Sam & Ann Smith were towing their 20-foot boat on the back of their pickup truck. While
approaching the green traffic light, Ann could see that another car, driven by Tom Jones, was going to run his red light, and was
not going to stop. Ann slammed on her breaks to attempt to stop before the intersection but slid into the middle of the
intersection anyway. Needless to say, you can imagine the impact that the Jones's car caused when it slammed into the side of
the Smith's pickup truck.
In a hurry, John & Jane Doe might have been traveling too close behind the Smiths'. The Doe's ended up running into the back
of the Smith's boat. Since the boat trailer wasn't quite hitched properly, the accident unhitched the Smith's boat trailer from the
back of the pickup. The good news is that the boat only slid 20 feet away and didn't hit the video rental store. The bad news is
that it knocked over a pedestrian named Mr. Bullwinkle.
IMPORTANT NOTE: Generally, when a boat is attached and being pulled by a vehicle, liability
coverage extends from the vehicle to the trailer being pulled. For this exercise, please assume that the
insurance company takes this same general liability approach. To be certain, you will want to check with
your insurance company prior to towing a trailer
IMPORTANT NOTE: "Pain & Suffering" is not a bodily injury that can specifically be proven. Some
insurance companies will negotiate "pain & suffering" with a claimant. Other insurance companies will
not settle and will leave "pain & suffering" up to the determination of a jury. For this exercise, please
assume that these insurance companies will negotiate and settle "pain & suffering".
● Tom Jones's insurance company accepted liability for Mr. Jones's part in the accident. They are
willing to pay for repairs to the Smith's pickup and bodily injuries sustained by the Smiths'. Also,
repairs to Mr. Jones's car.
● John & Jane Doe's insurance company agreed with the Smith's insurance company that the Doe's
are 75% liable for the damage to the boat. Yes, the Doe's ran into the Smith's boat, which caused
a lot of the damage, but the Smiths didn't hitch the boat up correctly. Therefore, part of the
damage for the trailer coming unhitched is the Smiths' fault.
● Sam & Ann Smith's insurance company accepted liability for 25% of the damage to the boat. The
Smiths' insurer also accepted liability for Mr. Bullwinkle's bodily injury
Directions: Based on the information above Determine how much each person
(family) will have to pay, and how much each insurance company will have to pay.
Explain your answer.
Let’s break it down!
Jane and John Doe: What are their damages?
5,000 (Property Damage) + $3,500 (Medical) + $12,000 (Medical)
20,500
Also, they are 75% liable for the boat. 75% of $30,000 = $22,500
Sam and Ann Smith: What are their damages?

$28,500 (Property Damage) + $30,000 (Property Damage/Totaled) + $75,680
(Medical) + $1,200 (Medical) + $100,000 (Medical for Mr. Bullwinkle)
Also, they are 25% liable for the boat, but the insurance company will pay for that.
25% of 30,000 = $7,500
135,380
Tom And Sue Jones: $900 (Medical) + $9,500 (Property)
Knowing this:
Case #1
Hometown insurance pays: $10,000 (Smith’s boat, 75%)
John and Jane Doe pay: $5,000 (Cost to repair their car) + $12,500 (Additional due
for their boat) = $17,500
Case #2
C&C Insurance company pays: $7,500 (Smith’s boat, 25%) + $25,000 (Mr.
Bullwinkle’s injury maximum per person) = $32,500
Sam and Ann Smith pay: No out of pocket cost
Case #3
Duncan Insurance Company pays:
$28,500 (Smith’s pickup) + $1,200 (Ann Smith’s bodily injury) + $75,680 (Sam
Smith’s bodily injury) + $9,000 (Jones’ Car) = $114,380
Tom Jones pays: $500 (Property damage deductible)

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● Scenario Worksheet:

Case #1 Case #2 Case #3

Hometown Insurance Company C&C Insurance Company Duncan Insurance Company

Includes: Includes: Includes:

Sam and Ann Smith: What are their damages?

Tom And Sue Jones: $900 (Medical) + $9,500 (Property)

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