What amount would the underinsured motorist coverage pay if the responsible party has limits of 15/30/5 and the damages are worth $50,000?

To determine the amount that underinsured motorist coverage would pay in this scenario, it is essential to understand how underinsured motorist coverage works in conjunction with the limits of the responsible party’s insurance.

In this case, the responsible party has liability limits of $15,000 for bodily injury per person, $30,000 for total bodily injury per accident, and $5,000 for property damage. The damages incurred in the accident are worth $50,000, which exceeds the limits of the responsible party’s coverage.

First, the responsible party's insurance will cover their maximum liability limit. For bodily injury, if only one person is involved, they would receive $15,000 from the at-fault driver's policy, which is significantly less than the total damages of $50,000.

Now, to find how much the underinsured motorist coverage will pay, we calculate the difference between the total damages and the coverage provided by the responsible party.

Total damages: $50,000

At-fault driver's coverage: $15,000

The calculation for underinsured motorist coverage would then be:

$50,000 (total damages) - $15,000 (coverage from the responsible party) = $35,000