Auto Insurance Claims: liability, policy limits

Question
I have 10/20/10 policyand i rear ended another vehicle with a driver and 2 passengers after the driver and passengers recover their pip benefits the driver has $2000 in medicals,one passenger has $7000 in medicals,the other passenger has $11,000 in medicals,How much if anything would my liability policy pay and why?

Answer
You limits are 10K per person per accident, or a total of $20K period (for the injury portions).  This means that the passenger that has $11K in medicals will get $10K (the maximum limit per person), and the other drivers will get paid for their medical costs.  You policy will end up paying $19K on this loss.  

Now, even though it is not technically a solution, sometimes, depending on the insurance company, if there is $1K left on the policy limits and by paying that $1k the insurance company can keep you from being sued, it is possible they will make an exception to the policy limit rule and just pay the remaining $1K out in return for full and final releases for you from all parties.  They do not have to do this as the limits are the limits, period.


I hope that was clear.