If Betty has a minimum policy of 10/20 and is at fault in an accident in NY, what will her insurance cover for total damages of $33,000?

In New York, the minimum liability insurance coverage requirement is known as the "10/20" policy, which means the insured is covered for a maximum of $10,000 for bodily injury per individual, and $20,000 for total bodily injury per accident. If Betty is found at fault in an accident with total damages amounting to $33,000, it's essential to understand how this coverage applies.

Since the total damages exceed Betty's liability limits, her insurance will not cover the full $33,000. However, based on local laws, her minimum policy will provide coverage as per the statutory requirements. In this scenario, her liability insurance can cover up to $20,000 for total bodily injury claims arising from the accident, which means that although the damages were $33,000, her coverage is explicitly aligned with what local law mandates.

This choice reflects the insurance structure and the legal framework governing minimum liabilities, demonstrating that local statutes determine how much insurance will pay in such circumstances, regardless of the total damages incurred.