What will my insurance cover in an accident if I have coverages of $25,000/$50,000/$25,000?
"I got into an at-fault accident that caused damages to two cars. Someone was also injured.
The damages to both vehicles were $20,000 and the person's medical bills were $26,000. What will my insurance cover?"
“Liability car insurance is made up of two parts: bodily injury liability and property damage liability.
Your coverage of $25,000/$50,000 refers to your bodily injury liability. Your insurance will pay out a max of $25,000 per person and up to $50,000 total in an accident. The other $25,0000 refers to your property damage liability. This means your insurance will pay up to $25,000 for any property damage.
Since the damages were under your property damage limit, your car insurance will pay for the full amount. However since the medical bills totaled more than your bodily injury limit, you’re responsible for the remaining $1,000.
You may need to pay this out of pocket if your insurance isn’t able to settle for your coverage limit.”
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