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4. A split limit policy pays a certain amount for each injured person and a total amount per incidence for all injured people. This type of policy is stated in three numbers: 50/100/50. The first of the three numbers, $50K, is the maximum amount that will be paid for bodily injury to each person in the case of an accident. The second number, $100K, is the maximum total amount that will be paid to all persons for each accident. It is important to remember that the second number is a cap for the first number. For example, let’s say are three people in the accident and the first has a bodily injury of $30K, the second has a bodily injury of $40K, and the third has a bodily injury of $40K. In this situation, the first person will be paid the full $30K since it is under the limit for each person, the second will also be paid the full $40K since it is under the limit for each person, and the third will only be paid $30K out of $40K even though $40K is under the limit for each person since the maximum amount for the accident, 100K, has been reached. So, the third person may have to pay $10K out of their pocket. The third and last number, $50K, is the maximum total amount available to pay for property damage for each accident. The $500 deductible means that before the insurance company pays anything, the insured must pay the $500. In other words, the deductible is the minimum amount that must be paid by the insured in order for the insurer to settle the rest of the claim. The minimum coverage for liability in Texas is 30/60/25. Since you are above the minimum requirements for state law, your coverage should be sufficient. If you need more coverage, you can always increase your limits or purchase a combined limits policy. The advantage of a combined limits policy is that you will have a maximum total coverage of $150K (adding the second and third numbers) for any combination...

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