You own an auto liability policy with 150/250/50 limits. You accidentally run into a 45-foot semi-trailer. The trailer is totally destroyed and was valued at $70,000. After your insurance company settles your claim, you would still owe:

Question

Quizplus · Accepted Answer

The liability limit for property damage in this policy is $50,000. Therefore, the insurance company will only pay $50,000 towards the damage caused to the trailer, leaving the policyholder responsible for the remaining $20,000 ($70,000 - $50,000 = $20,000).

You Own an Auto Liability Policy with 150/250/50 Limits