David has a $250 deductible for Other Than Collision coverage and $500 for collision. If he causes $3250 worth of damage hitting a cow, how much will his policy pay?

In this scenario, the amount that David's insurance policy will pay is calculated based on the type of coverage being utilized and the deductibles involved. When David hits a cow, the damage falls under the category of Other Than Collision, which means he will be dealing with the comprehensive portion of his policy.

Since David has a deductible of $250 for Other Than Collision coverage, he must first pay this amount out of pocket. Therefore, the amount he is responsible for will reduce the overall damage claim.

To calculate how much the insurance will pay:

1. Start with the total damage amount: $3250.

2. Subtract the deductible: $3250 - $250 = $3000.

As a result, the insurance policy will cover $3000 of the repair costs after David pays his deductible. This explains why the correct answer reflects the amount payable by the insurance after accounting for the deductible on the Other Than Collision coverage.