Auto Insurance Claims: Liability, limits

Question
You have a 10/20/10 policy and PIP.  You rear-end another car with a driver and two passengers.  After the driver and passengers recover their PIP benefits, the driver has medicals which total $2000;  one passenger has medicals left which total $7,000; one passenger has medicals which total $11,000.  How much, if anything would your liability policy pay and why?  

Answer
The liability policy would likely pay out $20K if non-economic damage (like pain and suffering) claims are allowed in the State, but if just talking about the medicals, then 19K.  

Why? You say?. . . .


So if pain and suffering is allowed in the State where this occurred, then the driver might have $2000.00 in pain and suffering, and the first passenger (w/$7k remaining) may have $3000.00 in pain and suffering, so 10/20/10 would cover only $20K maximum per accident for bodily injury liability so the passenger with $11k in medicals would get $10k, then the other two (driver and passenger) would have to agree on their portion of $10K that is left, so likely if I were the adjuster, I would pay $2500.00 to driver with $2000 left, and $7500.00 to the other passenger to make a total of $20K.

If it is just hard medicals, then just reduce the $11000K down to $10K as that is the maximum per person, and pay the others in full for a total of $19K.

I hope that makes sense, but if not you can look us up at www.pettydetailsllc.com and call us, we'll explain it to you over the phone.