How are the liability limits on a Personal Auto Policy generally structured?

Liability limits on a Personal Auto Policy are usually structured as "per person" and "per accident." This means that the policy specifies a maximum amount that will be paid for bodily injury to one individual in an accident (the "per person" limit) and a maximum amount that can be paid for all bodily injuries resulting from a single accident (the "per accident" limit). This structure is designed to provide clarity and protection for both the insured and third parties, ensuring that there is defined coverage in the event of an accident involving the insured vehicle.

Having limits structured this way allows for a clear delineation of coverage amounts based on the severity of injuries and the number of people involved in a claim. This is a standard approach in auto insurance, providing necessary flexibility within claims scenarios, while also setting boundaries on potential liability.

In contrast, the other options present different methods of limiting liability, which do not align with the common structure. For instance, a combined single limit consolidates the total liability into one single amount rather than separating it into per person and per accident. An aggregate limit refers to a cap on the total liabilities within a policy term, which is not characteristic of personal auto policies. Lastly, a flat limit for all claims does not account for