Abbey rents a replacement auto after her station wagon was stolen. What is the maximum amount her insurer will pay for transportation expenses from the rental?

Prepare for the Auto Insurance Exam with study tips, flashcards, and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

The correct answer reflects how auto insurance policies typically limit coverage for transportation expenses. In many auto insurance policies, the rental car reimbursement is often capped at a daily rate for a specified number of days. In this scenario, Abbey has incurred charges for renting a replacement auto due to her stolen vehicle.

The maximum reimbursement for transportation expenses is calculated based on a daily limit and the total number of days the vehicle is rented. Given the context, the policy may outline a limit of $20 per day for a maximum of 21 days, which aligns with the chosen answer.

Thus, the calculation of 21 days multiplied by the $20 daily rate yields a total of $420, representing the maximum allowance her insurer would reimburse for those transportation expenses. This demonstrates how insurance coverage limits can significantly affect what an insured party might actually receive in reimbursement during situations like vehicle theft.

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