If Joe's Personal Auto Policy has Liability limits of 25/50/25, what is the total cost to the company for Joe's claims involving multiple lawsuits?

To understand the total cost to the company for Joe's claims under his Personal Auto Policy with liability limits of 25/50/25, it's important to clarify what these numbers mean. The limits indicate the maximum amounts Joe's insurance will pay for various types of claims.

The numbers represent the following:

• The first number (25) is the maximum the policy will pay for bodily injury per person injured.
• The second number (50) is the maximum the policy will pay for bodily injury for all people injured in a single accident.
• The third number (25) is the maximum the policy will pay for property damage in a single accident.

If multiple lawsuits arise from a single accident, the total claims can be calculated by considering both the per person limit and the total limit for bodily injury.

Given the 25/50/25 limits:

• If multiple individuals are involved, the total liability limit for bodily injury is capped at $50,000 for all injured parties.
• If Joe is found liable and there are two individuals injured in the accident, the maximum payout for Joe’s claims would be $50,000 for the bodily injuries, assuming they were both severely injured but the payout did not exceed $25,000 per individual.