Question

Your automobile insurance policy contains policy limits of 100/300/75. If you have an accident in which you are deemed at fault and two people sustain bodily injuries that result in combined claims of $100,000, and there is property damage in the amount of $125,000, how much of the property damage will be covered under your insurance policy?

Select the correct answer

$125,000

$225,000

$100,000

$300,000

$75,000

Answer 1

Answer is $75000.

Explaination-

Policy limits of 100/300/75-

1st figure represents bodily injury per person- Insurance company is liable to cover $100,000 and is the maximum amount to be paid to each person of the other vehicle involved in accident.

2nd figure represents- Bodily injury per accident- 300 means maximum of $300,000 will be covered by Insurance company in an accident

3rd figure represents the property damage that is $75000 in this case.

Property damage covered would only be $75000 in this case by the Insurance company as the upper limit is $75000 in this case. Rest money has to be paid out of the pocket.