What is one impact of a Personal Auto policy having a per occurrence limit?

A Personal Auto Policy having a per occurrence limit specifically defines the maximum amount the insurer will pay for any single event or claim. This means that when a claim arises from an incident, the payout cannot exceed this established limit, regardless of the total costs that might be associated with that event.

For example, if a driver's car is involved in an accident that causes significant damage, the insurer will only provide compensation up to the occurrence limit detailed in the policy. This structure helps insurers manage risk and control potential losses, while also encouraging policyholders to consider the implications of multiple claims made within the same policy period.

The other options do not accurately reflect the concept of a per occurrence limit. It does not increase coverage limits for the entire year; instead, it caps potential payouts for individual events. Furthermore, while there may be a limit to the number of claims a policy can handle, a per occurrence limit itself does not imply an unlimited number of claims—it sets a restriction on the monetary compensation available for each claim. Lastly, the limit applies to bodily injury and property damage scenarios, not just personal property damage, which includes liability coverage for bodily injuries as well.