How much will Jeremy's PIP pay if he has bills totaling $3,000 and a $1,000 deductible?

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To determine how much Jeremy's Personal Injury Protection (PIP) will pay, it's essential to consider the deductible amount in relation to the total bills incurred. In this scenario, the total bills Jeremy has amount to $3,000, and he has a $1,000 deductible.

PIP works by providing coverage for medical expenses up to a certain limit, but it also includes a deductible that must be met before the insurance company pays out on the claim. Here’s how it is calculated:

  1. Start with the total medical bills, which is $3,000.

  2. Subtract the deductible amount from these total expenses: $3,000 - $1,000 = $2,000.

Therefore, after the deductible is applied, Jeremy's PIP will pay a total of $2,000 towards his medical bills.

This reasoning clarifies why the correct answer is indeed $2,000. Other choices do not reflect the deduction of the deductible from the total medical expenses correctly, leading to different outcomes.

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