What happens if an insured has multiple Personal Auto Policies with different insurers in the event of a claim for medical payments coverage?

When an insured has multiple Personal Auto Policies with different insurers and a claim arises for medical payments coverage, the principle of pro rata distribution applies. This means that each insurer is responsible for paying a portion of the claim that corresponds to its policy limits.

For example, if an insured has two policies, one with a limit of $10,000 and another with a limit of $20,000, and a claim arises for $20,000, the first insurer would pay $10,000, and the second would cover the remaining $10,000. This method ensures that the coverage provided by each policy is fairly utilized, avoiding instances of overpayment by insurance companies and ensuring equitable treatment for the insured.

This approach is in line with many insurance principles that advocate for fair distribution of claims among multiple policies, preventing situations where one insurer pays the entire claim or where all insurers refuse payment. The insured does not need to choose a single policy for claiming; instead, benefits are distributed according to the limits set in each policy.