What 10/20 Insurance Policy Means

What Policy Means

What insurance policy limits mean and how it’s distributed

People ask me what the policy limits are and what 10/20 means. Ten/twenty means there is $10k of coverage to pay each person in an accident. There is also a combined total of $20k of coverage. The first number, 10, is the maximum any one person can recover. So, the second number, 20, is the total amount available no matter how many people make a claim.

How Insurance Policy Limits are Distributed

If the insurance policy limits are 10/20, one person could recover up to $10k. Or two people could each recover $10k, exhausting the policy limits. If a car accident injures three people, any one of them could recover up to $10k. But, the other two have to share the remaining $10k of the $20k insurance policy limits. In this example, one person could get $10k. The second person could get $5k. Finally, the third person could get $5k. Any combination would work as long as it’s not greater than the $20k total limits.

The same concept applies in a situation where the policy limits are 100/300. It means any one person could recover up to $100k. While, the total combined insurance policy limits are $300k. In this example, three people could each recover one hundred thousand dollars. So, if a driver with a 10/20 injured 18 people on a bus, it’s a race for the policy limits. As soon as the insurance company pays out the full $20k, the policy limits are gone. While anyone who did not get part of the $20k recovers zero. In conclusion, that’s why it is important to consult with an experienced personal injury lawyer you are injured in an accident. If you have any questions or would like to speak with a lawyer, call me, Matt Powell, at 813-222-2222.

Matt Powell

About Matt

Matt Powell is a Board Certified Civil Trial Lawyer by the Florida Bar who represents injured victims and their families. He is an experienced personal injury trial attorney who has been practicing since 1989 in Tampa, Florida. If you have any questions, feel free to call him at 813-222-2222 today.

2 thoughts on “What 10/20 Insurance Policy Means”

  1. Thank you for sharing. So am I to understand that if someone hits me from the rear and I am the only person involved and injured in the accident the most I can expect to gain for my injuries is $10K on a policy that is 10/20

    • In some states, you may be limited to the policy limits, in other states, you can often times recover more than the policy limits if the insurance company does not settle with you when the could have and should have.


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