Alabama Insurance Adjuster Practice Exam

In a t-bone collision caused by running a red light, what is the liability amount Roxanne will have to pay out-of-pocket for destroying Ben's car?

1. $0

2. $500

3. $1,800

4. $25,000

The correct answer is: $1,800

In scenarios involving liability for an accident, the responsible party must pay for damages inflicted on another person's property or vehicle. In the case of a t-bone collision caused by running a red light, it is likely that Roxanne is considered liable for the damages to Ben’s car since her reckless action directly led to the incident. The correct answer indicates that Roxanne would have to pay a specific sum, which reflects the damages assessed for the destruction of Ben's car. This amount is what is determined based on the specifics of the claim, possibly including repair costs or the value of the car if it is deemed a total loss. The significance of this situation lies in understanding how insurance often covers damages, but there can still be scenarios where an individual must cover certain costs out-of-pocket depending on their deductible, their insurance coverage limits, or the extent of the damages. In this instance, $1,800 accurately represents the amount Roxanne must cover herself, reflecting the liability attributed to her actions. This demonstrates the practical application of liability in real-world situations and how it can result in a financial obligation for damages to another party's property.