How much do transportation expenses cover per day and what is the maximum amount?

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 indicates that transportation expenses cover $20 per day, with a maximum total of $600. This option aligns with typical auto insurance policies, which often provide coverage for additional expenses incurred when a vehicle is out of service due to a covered loss, such as a collision or other damage.

When a policyholder's vehicle is being repaired after an accident, transportation expenses help cover the cost of alternative transportation. The specified daily rate and maximum amount are designed to limit the insurer's exposure while still offering practical assistance to the policyholder during their time of need. The $20 per day is a reasonable figure for interim transportation costs, and the overall maximum limit of $600 provides a cap on the insurer's liability.

Other choices offer varying amounts for daily coverage and maximum limits. However, the correct choice of $20 a day and $600 as the maximum reflects one of the more common structures found in auto insurance policies, making it the most appropriate answer for this context.

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