If you had 10205 coverage and were in a car accident causing

If you had 10/20/5 coverage and were in a car accident causing injury to three people with injuries totaling $15,600, $9,600, and $5,600.

How much would you have to pay out of pocket?

And If you had 50/100/50 coverage for the same scenario, how much would you have to pay out of pocket?

Solution

Policy Limits

If your policy limits are 10/20/5, that’s the maximum coverage you have under the terms of the insurance contract. The “10” is for $10,000 in liability insurance for one injury or person involved. The “20” represents $20,000 for the maximum liability insurance for any one accident, regardless of the number of injuries. The “5” is for $5,000 as the maximum property damage coverage for any one accident.

In the first condition, my insurance pay $ 20,000 for any one accident regardless of injuries number.

The remaining amount that I have to pay out of my pocket is 30,800 - 20,000 = $10,800.

In the second case , I can utilise for 1 injury coverge of $ 50,000 where it covers 1 person of highest amount and for remaining I have to pay out of pocket of $15,200.

If i utilise one accident coverge irrespective of injuries I do not pay any amount.