This is the amount of money an insurance company has to pay its customer after an accident.
When signing up for a new insurance plan, you must choose from a list of options. You will have to specify what kind of car your drive (year, make, model, etc.) and how much money you want to be insured for (in both property and medical damages). There are many types of policies; like Full Coverage Insurance or Liability Only Insurance. Be advised that your choices in all of these options change your payoff amount.