What is the minimum amount payable for property damage per claim under an auto liability policy with limits of 100/300/25?

• A. 25,000
• B. 100,000
• C. 300,000
• D. 50,000

Answer: (A)

Understanding auto liability limits: in a 100/300/25 policy, the first two numbers relate to bodily injury (per person and per accident), while the third number is the property damage limit per accident. The minimum payable for property damage is the third value, so $25,000. This means the insurer will cover up to $25,000 of damage to someone else’s property from a single covered accident; any amount beyond that would be the insured’s responsibility unless other coverage applies. For example, if another car suffers $40,000 in damage, the policy would pay $25,000 and the remaining $15,000 would be out-of-pocket.