Glossary

Liability limits

The most a liability policy will pay for injuries and property damage you cause, usually written as three numbers such as 100/300/100.

Also called: split limits, coverage limits, 25/50/25, 100/300/100

Liability limits are the caps on what your insurer will pay for damage you cause to others. Most policies use split limits, written in thousands of dollars as three numbers. In 100/300/100, the first number is the most paid for injuries to any one person ($100,000), the second the most for all injuries in one accident ($300,000), and the third the most for property damage in one accident ($100,000).

The limits apply per accident and reset for each new crash. Anything above them is your responsibility. Suppose you cause a crash that injures one person, whose medical bills and lost wages total $140,000, and you have 100/300/100 limits: the insurer pays $100,000 and the injured person can pursue you for the other $40,000. Some policies instead use a combined single limit, one number covering everything.

States set minimum limits, 25/50/25 in many states, but those amounts buy little against today's medical bills and car prices; a single new vehicle can be worth more than a $25,000 property damage limit. Choose limits based on what you could lose in a lawsuit, and consider an umbrella policy above them. The liability limits decoder translates the limits on any policy or quote, and the How much car insurance do I need? helps you pick a level.

Last reviewed October 4, 2026

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Related terms

Bodily injury liability The part of auto liability insurance that pays for injuries or deaths you cause to other people in a crash, plus your legal defense. Property damage liability The part of liability coverage that pays for damage you cause to other people's cars and property, such as fences, buildings and poles. Combined single limit One liability limit covering all bodily injury and property damage from a crash, instead of separate per-person, per-accident and property caps. Minimum coverage The least car insurance a state lets you carry to drive legally, usually liability coverage at set limits and sometimes PIP or uninsured motorist coverage. Umbrella policy Extra liability insurance, usually sold in amounts of $1 million or more, that pays after your auto or home liability limits run out. Policy limit The most an insurer will pay for a covered loss under a coverage, stated per person, per accident or per vehicle on your declarations page.

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Related tools

Car insurance quote comparison worksheet Line up quotes from several insurers, annualize the prices and flag where coverage differs, so you compare like with like before you switch. Liability limits decoder Type limits like 50/100/25 to see what each number means and test them against a crash you cause — including how much would be left for you to pay.