How are Melanie's medical expenses covered under her and Lee's insurance policies after her accident?

The scenario involves two insurance policies, presumably covering medical expenses for Melanie, who was involved in an accident. The correct response indicates that Lee's policy covers its limit of $2,500, while Melanie's policy covers the remaining $2,500 in medical expenses, totaling $5,000.

This arrangement highlights how coordination between two separate insurance policies can work. Often, personal auto insurance policies will include medical payments or personal injury protection (PIP) which can bridge gaps left by other coverage. In this case, since Lee's policy has a cap at $2,500, it fulfills part of the obligation but leaves $2,500 uncovered. Melanie's own insurance policy then steps in to cover this remaining balance. This type of coverage is particularly relevant in situations where multiple policies are in effect, allowing the insured to maximize their benefits and minimize out-of-pocket expenses.

This method of coverage is important for understanding how medical expenses can be handled after an accident, ensuring that individuals do not face excessive financial burden when multiple insurance options are available.