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

In the context of a Personal Auto policy, the settlement for a claim typically follows the principle of indemnification, meaning that the insured is compensated for the actual loss experienced rather than receiving a payment that allows them to profit from the incident.

The correct answer indicates that Roger would receive a check for $11,200 to purchase a used car of like kind and quality. This aligns with how insurance policies generally operate, which is to replace or repair a vehicle to its pre-loss condition. The phrase "like kind and quality" reflects the insurance principle that if a vehicle is declared a total loss, the insured generally gets an amount that enables them to acquire a similar vehicle, rather than a new one or one of a different quality.

The amount, $11,200, suggests that this figure represents an agreed-upon value based on the condition of Roger's vehicle before the accident, which would likely take into account depreciation and market standards for vehicles of similar age and condition. This determination helps ensure that the insurance payout assists in restoring Roger to a position similar to where he was prior to the loss, with a vehicle that meets his needs without exceeding the pre-loss value.

Other options would not provide a fitting resolution under the policy terms. A check for $