In Fred’s split liability auto policy of $25/$250/$10, what does the $25 represent?

• A. The maximum property damage coverage
• B. The maximum bodily injury coverage per person
• C. The maximum bodily injury coverage per accident
• D. The maximum coverage for medical bills

Answer: (B)

In a split liability auto policy, the figures represent different types of coverage limits for bodily injuries and property damages. The first number in the sequence, which is $25 in this case, indicates the maximum bodily injury coverage available for each individual involved in an accident. This means that if Fred is found liable for injuries to another person, his insurance will pay up to $25,000 for that person's medical expenses related to the injury, but only for each individual, not cumulatively for all people injured in the same accident.

The other components of the split liability policy, which aren't specified in this case but may include additional figures, would typically cover the maximum amount payable for bodily injury per accident and the maximum amount for property damage. Understanding these limits is crucial for assessing risk and making informed decisions about coverage needs.