What are Policy Limits and Deductibles?

	John has a car accident. His repair shop estimates the cost of repairs at $2,000. John pays $750 of the bill and his insurance company pays the remainder.

LIMITS — The maximum dollar amount the insurer will pay following an auto accident. Limits vary with each coverage within the policy.

DEDUCTIBLES — Payments you have to make before the insurer pays. For example, a $750 deductible means that you pay the first $750 of each claim.