What is the maximum amount that Mr. Higgins' policy will pay for bodily injury and property damage combined?

To determine the maximum amount that Mr. Higgins' policy will pay for bodily injury and property damage combined, it’s essential to refer to the specifics of his insurance coverage. Typically, insurance policies outline the limits of liability for bodily injury per person, per accident, as well as property damage.

If the correct answer is $26,000, it indicates that Mr. Higgins' policy likely has coverage limits structured to cover both bodily injury and property damage combined to a ceiling of $26,000. This might suggest a situation where the coverage amounts allocated for bodily injury (such as $20,000 for injury to one person) and property damage (perhaps $6,000) are cumulatively not exceeding the specified limit.

Understanding these coverage limits is critical in adjusting claims and ensuring that affected parties receive the appropriate compensation according to the terms of Mr. Higgins' policy. It’s also vital to consider that payout amounts will depend on the specifics of each incident, including actual damages incurred, and whether they fall within the set liability limits defined in the policy.