How much will Wilson's liability insurance pay after causing property damage in Georgia?

The reasoning behind selecting the option indicating a policy limit of $20,000 is rooted in understanding liability insurance amounts and state requirements. In many cases, liability insurance policies can specify a maximum payout amount for damages caused by the insured.

In Georgia, the minimum liability coverage requirements for property damage is often set around a specific figure, such as $25,000, but having a policy with higher coverage, like $20,000, indicates that the insured (in this case, Wilson) has opted for a plan that covers substantial damages without hitting the state minimum.

This option reflects a situation where the insurer would pay up to the policy limit of $20,000 for property damages that Wilson caused, provided that the damages do not exceed this limit. Thus, if Wilson caused property damage that totaled less than or equal to $20,000, his policy would cover those costs effectively, reinforcing the relevance of having higher coverage limits to ensure adequate protection against liabilities.

It’s important to note that options implying either a lower coverage limit or only the minimum required would not apply if Wilson's policy specifically indicates a higher limit, thus confirming that $20,000 is the appropriate choice given the information available.