What policy language describes the reduction of damages based on amounts covered by the at-fault driver's insurance?

The term that best describes the reduction of damages based on amounts covered by the at-fault driver's insurance is "Damages Offset." This concept is fundamental in personal auto insurance, particularly in cases where multiple insurance policies may apply to a single loss scenario.

When the at-fault driver has liability coverage, the damages awarded to the injured party may be offset by the amount of coverage provided by that insurance. Essentially, this means that if the claimant is entitled to a certain amount of damages but also receives compensation from the at-fault driver’s insurance, their recovery may be reduced accordingly. This aligns with the principle that a claimant should not receive a windfall by recovering more than their loss after accounting for the funds received from the responsible party’s insurance.

The other terms mentioned do not accurately capture this concept. "Insurance Adjustments" could refer to any modifications an insurer may make to a claim but does not specifically address the offsetting of damages. A "Deductible Clause" pertains to the amount a policyholder must pay before the insurance company will cover a loss, which is a different topic. "Coverage Limitation" typically refers to restrictions on the type or amount of coverage available under a policy rather than the interplay between damages and compensation from an