Bill carries $10,000 in PIP coverage with a $500 deductible. If his medical bills from an accident come to $14,000, how much will his PIP pay for his injuries?

In this scenario, Bill has Personal Injury Protection (PIP) coverage with a total limit of $10,000 and a deductible of $500. When calculating how much will be paid out for his medical bills, the deductible is subtracted from the total medical bills before applying the insurance limit.

Bill’s medical bills amount to $14,000. However, he first has to pay his deductible of $500. This leaves him with a net amount of $13,500 in medical costs after the deductible is applied. Since his PIP coverage limit is only $10,000, the insurance can only pay up to that maximum amount.

Therefore, regardless of the total medical bills after accounting for the deductible, PIP coverage will pay the capped amount of $10,000. This makes the answer B, as it reflects the limit of his PIP coverage, which he can fully utilize despite the higher medical expenses.