01.Core Concepts

1The first two numbers refer to bodily injury (B I) liability limits and the third number to property damage (P D) liability. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $ 20,000 for one individual and$10,000 for property damage. 2Low-cost policy limits for low – income drivers in the California automobile assigned risk plan are 10/20/3. 3Instead of policy limits , policy holders can satisfy the requirement with a combined single limits policy amounts vary by state. 4In addition policy holders must carry coverge for medical payments. amounts vary by state. 5Basics policys (optional) limits 10/10/5 uninsured and underinsured motorist coverage not available under the basic policy must uninsured motorist coverage is required under the standard policy. 6In addition policy holders must have 50/100for wrongful death coverage. 7UIM mandatory in policies with UM limits exceeding 30/60. 8Compulsory to buy Insurance or pay an uninsured motorists vehicle (U M V) fee to the state department of motor vehicles. Note: data are from Property Casualty Insurers Association of America and state departments of insurance. Source: The Insurance Fact Book 2018, New York: Insurance Information Institute, pp 92-93. Reprinted with permission.