How would Roger's claim be settled under his standard Personal Auto policy after hitting a tree?

Prepare for the Pennsylvania Auto Physical Damage Appraiser License Exam. Use flashcards and multiple-choice questions, complete with hints and explanations. Ensure your success on the test!

In the context of a standard Personal Auto policy, when an insured individual like Roger experiences damage to their vehicle due to an accident—such as hitting a tree—the settlement will typically be determined by the actual cash value (ACV) of the vehicle at the time of the accident. This includes considerations of depreciation and the market value of the vehicle.

The correct choice indicates that Roger would receive a check for $11,200 to purchase a used car of like kind and quality. This aligns with how auto insurance policies generally operate when a vehicle is involved in a covered loss. The coverage under a standard Personal Auto policy usually does not provide for brand new vehicles unless specifically stated (like in new car replacement coverage), so the amount would reflect the current market value of the vehicle, which may not match the purchase price.

In regard to the other options, the first suggests a payment for a new vehicle, which typically would not occur since most personal auto policies pay the actual cash value minus deductibles rather than a new car purchase. The claim stating that Roger would not receive payment at all due to the insured causing the accident misrepresents how auto policies function; they generally cover damages incurred by the insured, barring particular exclusions. Lastly, another option that specifies

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