How much will an auto liability policy pay if the limits are 25/50/15 and the insured is liable for injuries of three persons totaling $35,000?

An auto liability policy with limits of 25/50/15 indicates that it provides coverage for bodily injury and property damage as follows: $25,000 for each individual injured in an accident (the first figure), up to a total of $50,000 for all individuals in each accident (the second figure), and $15,000 for property damage (the third figure).

In this scenario, three persons are injured with total medical expenses amounting to $35,000. The $50,000 limit applies to the total liability for bodily injury in this incident, accommodating injuries to multiple parties. Since the combined medical costs do not exceed the $50,000 limit for all individuals in the accident, the policy will cover the entire $35,000 amount for bodily injuries. However, it is essential to note that the maximum payout for a single individual is still capped at $25,000.

Thus, in this case, the auto liability policy will pay out $35,000, which is within the limits set by the policy. This brings clarity to why $35,000 is the correct answer: it reflects the total incurred injury costs and remains under the maximum limit for multiple claimants.