If a vehicle sustained $2,000 in damage and the insured has collision coverage with a $1,000 deductible, how much will the insurer pay?

In this scenario, the insured has collision coverage on their vehicle, which means that the insurance will cover the damages after the deductible is applied. Since the vehicle sustained $2,000 in damage and the insured has a $1,000 deductible, the insurer will subtract the deductible from the total damage amount.

To calculate the amount the insurer will pay, you take the total damage of $2,000 and subtract the deductible of $1,000. This results in a payment of $1,000 from the insurer. Thus, the insured will receive $1,000 towards the cost of repairs. This aligns with how collision coverage typically operates, making the reasoning clear on why the specified amount is correct.