If an insured has a 25/50/15 auto liability policy and is held liable for bodily injuries totaling $80,000, how much will the insurer pay?

A 25/50/15 auto liability policy indicates specific coverage limits for bodily injury and property damage. The first number (25) represents the maximum amount the insurer will pay for bodily injury per person, the second number (50) represents the total maximum amount the insurer will pay for all bodily injuries per accident, and the third number (15) pertains to the maximum for property damage.

In this scenario, if the insured is held liable for bodily injuries totaling $80,000, the maximum the insurer will pay for each individual claimant is $25,000, and for all claimants combined in the accident, the cap is $50,000. Since the total bodily injury claims exceed the individual limit, the insurer will only pay up to the maximum combined limit for all claimants involved. Therefore, in this case, the insurer will pay $50,000, which represents the highest limit of liability coverage the policy provides for bodily injury per accident.

The key takeaway is that the insurer is only required to pay up to the policy limits, which in this situation is $50,000 for the total injuries, despite the total liability being higher at $80,000. This illustrates the importance of understanding the limits of an auto liability insurance policy