18 Questions
What are policy limits?
The maximum amount an insurance policy will pay for covered losses
In car insurance, what does Bodily Injury Liability Limits specifically cover?
Injuries sustained by other people in an accident where you are at fault
What does Property Damage Liability Limits cover in car insurance?
Damage to someone else's property
If you have a $50,000 property damage limit, what does it mean?
The insurance will cover up to $50,000 for property damage you are responsible for in an accident
What does Uninsured/Underinsured Motorist Coverage Limits protect against?
Accidents with a driver who has insufficient or no insurance
What do the Uninsured/Underinsured Motorist Coverage Limits apply to?
Both bodily injury and property damage
Who sets the policy limits when purchasing insurance?
The policyholder
What is Property Damage Liability Limits?
The maximum amount the insurance company will pay for damage caused to someone else's property
What are Bodily Injury Liability Limits in car insurance?
The maximum amount the insurance company will pay for injuries sustained by other people in an accident where you are at fault, typically split into per person and per accident limits.
What is the Per Person Limit in Bodily Injury Liability Limits?
This is the maximum amount the insurance company will pay for injuries sustained by one individual in the accident.
What does the Per Accident Limit in Bodily Injury Liability Limits cover?
This is the overall maximum amount the insurance company will pay for all injuries in a single accident, regardless of the number of people injured.
What does Property Damage Liability Limits in car insurance cover?
The maximum amount the insurance company will pay for damage caused to someone else's property, such as their vehicle or a building.
If you have a $50,000 property damage limit, what does it mean?
The insurance will cover up to that amount for property damage you are responsible for in an accident.
What do Uninsured/Underinsured Motorist Coverage Limits protect against?
This coverage protects you if you are involved in an accident with a driver who has insufficient or no insurance, applying to both bodily injury and property damage.
What are Policy Limits in insurance?
The maximum amount that an insurance policy will pay for covered losses.
What types of aspects do different Policy Limits cover in car insurance?
They cover specific aspects of potential damages or injuries, such as bodily injury, property damage, and uninsured/underinsured motorist coverage.
What is the purpose of Uninsured/Underinsured Motorist Coverage Limits?
To protect you if you are involved in an accident with a driver who has insufficient or no insurance, applying to both bodily injury and property damage.
Who sets the Policy Limits when purchasing insurance?
The policyholder sets the Policy Limits when purchasing insurance.
Learn about the concept of policy limits in insurance, which refers to the maximum amount an insurance policy will pay for covered losses. This quiz also covers different types of limits and their specific aspects in car insurance.
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