Is party injured in car wreck entitled to liability coverage equal to the policy limit times the number of vehicles insured or only the limit on the vehicle involved in the wreck?
Answer: Just one policy limit. This is so because of the “our limit of liability” clause of the policy. This (from my USAA policy) reads something like: “For BI sustained by any one person in any one auto accident, our maximum limit of liability for all resulting damages, including but not limited to, all direct, derivative or consequential damages recoverable by any persons, is the limit of liability shown in the Declarations for “each person” for BI liability.” This is generally upheld to prevent stacking as to liability coverage but not as to UM, if a separate premium is charged.
Sun, November 28, 2010
by Sharon Coleman filed under