Which statement about the maximum amount payable under the Supplementary Payments in a Personal Auto Policy is correct?

In a Personal Auto Policy, the maximum amount payable under the Supplementary Payments section is indeed $250. The Supplementary Payments provide coverage for additional expenses that may arise in the event of an accident or claim. This can include things like reasonable expenses incurred by the insured for assistance in the investigation or defense against claims, as well as costs associated with bail bonds, and other necessary expenses related to the legal process.

The reason $250 is significant is that it specifies a specific limit established by the policy that applies in addition to the liability limits. This limit is designed to help cover the out-of-pocket expenses that an insured person may face, offering a safety net beyond the primary coverage amounts. This clarity in the policy helps ensure that insured individuals are aware of the benefits available to them without diminishing their primary coverage limits.

Understanding these Supplementary Payments is crucial for policyholders, as it allows them to better manage the financial implications of an auto accident, knowing that they can receive additional funds up to this limit to cover certain expenses.