What are Liability Insurance Coverage Limits?

The coverage limits you select will determine how much your insurer will pay for a claim under your liability insurance. Drivers are required to acquire minimum limits of bodily injury (BI) liability and property damage liability coverage, but you are free to purchase more. On your auto insurance policy, you can notice one of three liability coverage limits:

Property damage liability limit.

  • This is the highest repair cost your insurance company will cover for harm you cause to someone else’s property. The maximum payout would not go over what you’ve allocated.

Bodily injury liability limit per person.

  • This is the maximum compensation that will be given to each victim of an accident that you caused.

Bodily injury liability limit per accident.

  • This is the total amount your insurance will cover for all medical costs resulting from a single accident for which you bear responsibility. It’s crucial to set this limit at a level that seems appropriate for you because it might be required to assist in covering the medical costs of several people.

Most insurance companies combine the limitations for property damage and physical injuries. Your policy might, for instance, be something like this:

  • 25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit)
  • 100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)

The packages your insurer provides determine your coverage limits. In other words, you might not be able to select specific limitations for your property damage or bodily injury coverage. You cannot use your liability insurance to cover the costs of vehicle damage or personal harm. You’ll need collision and/or comprehensive insurance for it.


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Dr. Nakul Karkare

I am fellowship trained in joint replacement surgery, metabolic bone disorders, sports medicine and trauma. I specialize in total hip and knee replacements, and I have personally written most of the content on this page.

You can see my full CV at my profile page.