25. Kelly's vehicle is insured under basic Autoplan, including basic vehicle damage coverage (BVDC). She has also purchased optional collision coverage from ICBC, subject to a $500 deductible. She is involved in an accident with another British Columbia insured vehicle, and Kelly is 75 percent at fault. If Kelly sustains $6,000 in vehicle damage in this accident, how much will ICBC pay for the damage?
Answer: C
ICBC will pay $5,500 for the damage.
In this scenario, Kelly is 75 percent at fault for the accident, which means she is responsible for 75 percent of the damage costs. With a total vehicle damage of $6,000, ICBC will cover the remaining 25 percent after applying her deductible.
A) 4125 dollars
This option is incorrect because it incorrectly calculates the amount ICBC would pay. To find the payment, one must first determine the fault percentage and then apply it to the total damage amount, which does not lead to this figure.
B) 4500 dollars
This option is also incorrect. It implies a different calculation that does not accurately reflect the 25 percent of the total damage that ICBC would cover after accounting for Kelly's fault percentage and deductible.
C) 5500 dollars
This option is correct. Since Kelly is 75 percent at fault, she is responsible for $4,500 of the $6,000 in damages. Therefore, ICBC pays the remaining 25 percent, which equals $1,500, leading to a total payment of $5,500 after deducting her deductible.
D) 5625 dollars
This option is incorrect as it suggests an incorrect payment calculation. The amount does not correspond to the correct proportion of the damages that ICBC would cover based on Kelly's fault and the applicable deductible.
Conclusion
The correct answer, $5,500, reflects the accurate calculation of the damages covered by ICBC after considering Kelly's level of fault and her deductible. All other options fail to properly account for these factors, leading to incorrect amounts that do not align with the insurance policy terms regarding fault and coverage limits.