can someone please explain the following:
Joe has a PAP with two cars and UM limits of 25/50 stacked. He also has Basic PIP and$1000 Med Pay. He is involved in an accident where a hit and run driver runs into his car. He has $42,000 in medical bills. How much would his UM Pay?
a. $25,000
b. $31,000
c. $42,000
d. $50,000
I'm pretty sure I understand this one (but I could be wrong)
His limits for each coverage are:
PIP - $10,000 (automatic with the 10/20/10 coverage)
Med Pay - $1000
UM Coverage - $50000 (because he has two cars with stacked coverage of $25,000 each and with stacked coverage you add them together).
So the payouts are:
PIP - $10000 (its Primary coverage)
Med Pay - $1000
UM Coverage - $31000 (Excess over the other two) - THIS BEING THE ANSWER
Total Coverage for the whole accident was the entirety of the $42,000
Rachel,
Your explanation is good with one minor clarification. PIP is not "automatic" with 10/20/10 liability. PIP is required by the No Fault Law and it is not related to any amount of liability coverage. Liability coverage does not apply in this situation because the driver was not at-fault.
Jan