What is a combined limit in an auto insurance policy?

• A. The max amount the insurer will pay on a covered loss
• B. The minimum required by law
• C. The sum of all premiums paid
• D. The deductible amount

Answer: (A)

A combined limit is the maximum the insurer will pay for damages arising from a single covered accident under the liability portion of an auto policy. It represents the single cap for all losses in that incident, combining bodily injury and property damage into one limit (or using a single per-claim total, depending on the policy). If total damages exceed that limit, the insured would be responsible for the excess, within the policy terms. It is not the legal minimum required by law, not the total amount of premiums paid, and not the deductible amount.