Chevy pays an annual premium of $840 for automobile insurance, including liability coverage of up to $85,000. He pays this for six years without needing to file a single claim. Then he causes an accident, for which the other driver is claiming $52,000 in damages. How much more expensive were the costs of the accident than what Chevy had invested so far in his insurance policy?

Question

anonymous · Answer

For 6 years, he paid $840 per year to the insurance company for insurance.  
6 x $840 = $5,040.
The accident cost $52,000.   Can you figure out the rest?