Drivers Miller and Taylor live in a state having no-fault auto insurance. Taylor causes an accident by hitting Miller's bike. Taylor is not hurt. Miller spends five days in the hospital at a cost of $6,400. Compute the amount each driver's insurance company pays toward medical expenses.

No-fault Insurance

An auto insurance policy where claims are paid without regard to fault, meaning your insurer will pay for your damages regardless of who caused the accident.

Medical Expenses

Costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body.