ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A car insurance policy of 500/500 means it would cover up to $500, 000 in bodily injury liability coverage per person and per accident. But most insurance companies don’t offer split limits this high, instead you can purchase a combined single limit policy.

Detailed explanation-2: -Minimum Bodily Injury Liability Limits If one person is injured in the accident, your coverage pays up to $15, 000. A total of $30, 000 for the death or injury of more than one person in any one accident. If 2 or more people are injured, the coverage pays up to $30, 000. The coverage will not pay more.

Detailed explanation-3: -The best liability coverage for most drivers is 100/300/100, which is $100, 000 per person, $300, 000 per accident in bodily injury liability and $100, 000 per accident in property damage liability. You want to have full protection if you cause a significant amount of damage in an at-fault accident.

Detailed explanation-4: -In the event of an accident wherein the insured person causes damage to the third party car, the insurer will provide coverage of up to Rs 7.5 lakh for the third party.

Detailed explanation-5: -For example, here is how 50/100/50 limits break down: 50 Bodily Injury Coverage-$50, 000 per person for injuries. 100 Overall Maximum Coverage-$100, 000 will be paid out for injuries total per accident.