How much does a personal auto policy cover for transportation expenses after an accident?

A personal auto policy provides coverage for transportation expenses incurred as a result of an accident when your vehicle is being repaired. The specifics of this coverage under the personal auto policy typically include a daily limit alongside a maximum payout amount for the entire period of repair.

In this case, the correct choice indicates coverage of $20 per day, up to a maximum of $600. This means that if an accident occurs that necessitates repairs to the insured vehicle, the policyholder can claim $20 for each day of transportation expenses, until they reach the maximum limit of $600. The rationale behind this is to provide ample support for transportation needs, ensuring that individuals are not left without alternative means of getting to work, school, or other necessary destinations while their vehicle is out of commission.

This combination of a daily rate and a cumulative ceiling reflects standard practices in auto insurance, aiming to balance generous coverage with sustainable underwriting practices for insurance providers. Thus, in the context of the scenario presented, the specific dollar amounts outlined in the correct answer align with typical policy provisions regarding transportation costs following accidents.