Joe has a personal auto policy 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 nuch would his UM pay?
Answer is: $31000.
Please explain!?
Out of $42,000, $1000 from medical bills = $41,000. $10,000 for pip which would leave $31,000.
Chuong,
PIP always pays first and Joe will receive the maximum policy limit of $10,000. Med Pay covers second and Joe will receive $1000. The remaining $31,000 of Joe's medical expense will be paid by UM. Since Joe has $50,000 available in UM, there are funds to cover this loss.
Jan
Thanks!