What is the limit of liability in Part D: Coverage for Damage to Your Auto?

• A. The lesser of the ACV of the vehicle or the amount needed to repair or replace the vehicle
• B. The full value of the car
• C. A fixed amount of 10,000
• D. The policy limit for liability

Answer: (A)

For damage to your own auto, the limit of liability is set to the lesser of the vehicle’s actual cash value (ACV) or the amount needed to repair or replace the vehicle. This means you won’t receive more than the car is worth today, nor more than it would cost to repair or replace it, whichever is lower. In practice, if repairs cost less than the car’s current value, you’d receive that repair cost (subject to the deductible); if repairs would cost more than the car’s value, the payout won’t exceed the ACV. The deductible reduces the payment, but the cap is based on the lesser of ACV or repair/replacement cost. The other options don’t fit because they either assume a fixed amount, pay the full value, or refer to the liability limit for third-party coverage, not damage to your own auto.