What are the typical limits of liability coverage for bodily injury in a personal auto policy?

Prepare for the Auto Insurance Exam with study tips, flashcards, and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

The typical limits of liability coverage for bodily injury in a personal auto policy are structured to provide protection for the insured against claims resulting from bodily injuries sustained by other parties in an accident for which the insured is deemed liable. The limits indicate the maximum amount the insurance company will pay for each individual injured (per person) and the total amount it will pay for all injuries in a single accident (per accident).

Option B, which states $100,000 per person and $300,000 per accident, represents standards that cater to higher potential liabilities, allowing for adequate compensation in cases of serious injury. This level of coverage is more common as it aligns with the need for more comprehensive protection in an increasingly litigious society where medical expenses and damages can significantly exceed lower coverage limits.

When analyzing the other amounts provided, they are generally lower limits that may not sufficiently cover the costs associated with serious injuries, highlighting the advantage of the limits presented in Option B that afford better financial security and compliance with many state minimum requirements. Therefore, choosing this option reflects an understanding of the potential financial implications arising from automobile accidents.

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