Tom's car is insured with a Personal Automobile policy. The coverage includes medical payments with $2,000 limits. Which of the following is a TRUE statement about the amount payable by the medical payments coverage for necessary medical expenses?

Medical payments coverage under Tom's policy applies only to injuries sustained in the insured vehicle or as a pedestrian if the person is covered. Since Tom's daughter was not in the vehicle and was involved in a different type of accident, the policy does not cover her medical expenses in this case.

Similar to option A, Tom's medical payments coverage does not extend to injuries incurred outside of the insured vehicle. Therefore, regardless of the circumstances of the accident, the policy will not cover medical expenses for his daughter when she is not a passenger in the car.

This option misrepresents how medical payments coverage works. Tom's policy and his neighbor's policy would pay separately for his medical expenses, allowing him to potentially receive up to $4,000 total—$2,000 from each policy, not limited to $2,000 overall.