How much will Cathy’s policy pay for the damages after the accident with the deer, given her deductibles?

To determine how much Cathy's policy will pay for the damages after the accident, one must consider the total cost of the damages and subtract any applicable deductibles. The amount paid by the insurance policy is calculated as follows: if the total damages amount to a specific dollar value, the insurance will cover that amount minus Cathy's deductible.

In this case, if the answer is $325, it means that the total damages from the accident were $625, and Cathy had a deductible of $300. Therefore, the policy pays the remaining amount after the deductible is applied, which is $625 - $300, resulting in the insurance payment of $325. This effectively demonstrates the relationship between the total damage costs, deductibles, and what the insurance will compensate.

Understanding this structure is key in insurance policies, as the deductible directly influences the payout amount following an incident or claim.