How does a personal auto policy treat multiple vehicles regarding deductible and policy limits?

In a personal auto policy, each vehicle is treated independently concerning deductibles and policy limits. This means that the deductible for each vehicle must be met for claims associated with that specific vehicle, and policy limits are also applied separately to each vehicle.

For example, if a policyholder has two vehicles, and each vehicle has a deductible of $500, the policyholder will need to pay the $500 deductible for each vehicle involved in a claim. Similarly, if each vehicle has its own policy limit—let's say $100,000 for one vehicle and $150,000 for another—each vehicle’s coverage operates independently when assessing claims.

This structure is particularly beneficial for policyholders as it maximizes their coverage potential across multiple vehicles and allows for comprehensive protection tailored to each vehicle's value and associated risk. Having separate deductibles and limits ensures that claims do not overlap or reduce the amount available for another vehicle's claims, which maintains clarity and fairness in coverage.

Understanding this separation in coverage is critical for effective risk management and ensures policyholders can adequately protect their assets across all vehicles listed in their policy.