After Mark's accident, how much will he have to pay out-of-pocket given the details of his liability coverage?

To determine how much Mark will have to pay out-of-pocket after his accident, it's essential to consider the specifics of his liability coverage. In general, liability coverage is designed to pay for damages that the insured is found responsible for in an accident. This may include property damage and medical expenses for other parties involved, up to the limits set forth in the policy.

When looking at liability coverage limits, it’s important to understand that if the total damages from the accident exceed the coverage limits, the insured will be required to cover the excess amount out-of-pocket. The correct answer here indicates that the total liability is $20,000, which likely exceeds Mark's coverage limit, requiring him to pay the difference himself.

This understanding emphasizes the need for adequate liability coverage to protect against potential out-of-pocket expenses in the event of significant accidents. In this scenario, Mark's policy coverage may only apply up to a certain limit, so any damages beyond that threshold would result in him being responsible for paying that excess amount directly.

Analyzing the context helps clarify why a figure of $20,000 is appropriate; Mark's financial exposure would align with the assessed damages after considering the limits of his liability coverage.