10. Computing your liability - An auto insurance example What are the possible consequences of your automobile policy coverage choices? Many states mandate minimum limits for several Insurance coverages, but these limits rarely provide sufficient protection for you as the insured or for others who may be affected by your actions and decisions. Many drivers have insufficient coverage-even though their limits exceed the state minimum. Consider the consequences of Kenji's Insurance coverage decisions below Kenji has a Personal Automobile Policy (PAP) that provides liability coverage with limits of $50/100/50, no medical payment insurance, and uninsured and underinsured motorist coverage with limits of $100/300. He has collision and comprehensive coverage, both of which have a $500 deductible Suppose one day Kensi fails to notice a red light, causing him to blindside another car crossing the intersection. Fortunately, he is not badly injured, but the medical bill for his hospital examination nonetheless amounts to $1,938. The driver of the other car, a woman named Lucia, suffered severe injuries from the direct impact of the accident, requiring an initial surgery, an extended hospital stay, and additional physical thergoy procedures for several subsequent months. The total of her medical bills, plus compensation for being unable to work for nearly a month, totaled $135,947. Lucia insurance company successfully filed a claim against Kenji by exercising subrogation rights, of Lucia's medical bills. Kenji's medical bills Coverage A of Kenji's plan will reimburse him for Keny's car was relatively unharmed by the collision but required 1,200 in minor repairs. Lucia's car was destroyed, making Kenji kable for paying the $10,400 replacement value. Lucia's car was pushed up onto a nearby sidewalk on impact, destroying a nearby town and causing additional damage to a parked car. This damage totaled $8,693 Keng's ability coverage also will reimburse him for up to worth of property damage. Therefore, he is responsible for paying out-of-pocket in property ability damages. Which of the following is true regarding the damage to his own car? 1 will be rembursed up to the difference between his liability coverage and the damage to other property It will be reimbursed fully, minus the $500 deductible. It is not covered under his policy