Final answer:
The advisable dollar limit for any one auto accident is not specified in the provided information. Insurance premiums are based on the total expected costs of damages in a group of insured drivers. Drivers should consult an insurance professional to determine appropriate coverage limits based on individual financial and risk considerations.
Step-by-step explanation:
The advisable dollar limit for any one auto accident is not explicitly stated in the given information. However, we can discuss how auto insurance premiums are determined based on shared risk to understand coverage limits better.
Using the provided example, 100 drivers are divided into three risk categories, and the total damage incurred in accidents amounts to $186,000 for the year. This figure is obtained from 60 minor accidents costing $100 each ($6,000), 30 medium-sized accidents at $1,000 each ($30,000), and 10 large accidents at $15,000 each ($150,000). To cover these costs, each driver pays an insurance premium of $1,860 annually, which, when multiplied by 100 drivers, equals the total damage cost.
Insurance coverage limits are based on the policies set by the insurance company and can vary. It's essential for drivers to choose coverage limits that reflect their financial situation and risk tolerance. Standard recommended limits may involve coverage for bodily injury per person, per accident, and property damage. It is always advisable to consult with an insurance professional to determine the appropriate coverage limits.