What is the minimum coverage limit for a Personal Auto Policy (PAP)?

The minimum coverage limit for a Personal Auto Policy (PAP) is typically expressed in terms of bodily injury liability coverage per person and per accident. The correct choice of 10/20 indicates that the policy provides coverage of up to $10,000 for bodily injury to one person, and up to $20,000 for bodily injury per accident.

This type of coverage is essential because it helps protect the insured from financial burdens resulting from injuries sustained by others in an accident for which the insured is deemed at fault. It is crucial for fulfilling state requirements for maintaining a minimum level of liability insurance.

Each of the numbers reflects important financial protection against claims filed for injuries arising from car accidents, with the first number representing the limit for individual claims and the second representing the total limit for all claims related to a single accident. Understanding these limits helps policyholders choose adequate coverage based on their personal needs and local laws.