Liability limits are the most your policy will pay for injuries and property damage you cause in an accident. They’re usually written as three numbers in thousands of dollars. A 50/100/25 policy pays up to $50,000 for each injured person, up to $100,000 in total injury costs per accident, and up to $25,000 for property damage.
If the costs of a crash you cause go past those limits, you can be personally responsible for the rest. That’s why it’s worth choosing your limits carefully.
Key Takeaways
- The three numbers stand for bodily injury per person, bodily injury per accident and property damage per accident, all in thousands of dollars.
- If a judgment or settlement is more than your limits, the NAIC says you’ll have to pay the difference yourself.
- State minimums range from 15/30/5 in Pennsylvania to 50/100/50 in North Carolina, and several states have raised theirs since 2025.
- Regulators say minimum limits usually aren’t enough to protect your assets. Higher limits, and an umbrella policy on top, add more protection.
What the Three Numbers Mean
The NAIC’s consumer shopping tool explains that liability coverage “usually is described in three numbers.” Here’s how that works for a 50/100/25 policy:
| Number | What it covers | In a 50/100/25 policy |
|---|---|---|
| First | Bodily injury liability for each person you injure | Up to $50,000 per person |
| Second | Bodily injury liability for everyone injured in one accident | Up to $100,000 per accident |
| Third | Property damage liability for one accident | Up to $25,000 per accident |
Bodily injury liability covers medical expenses for other people hurt in an accident you cause. Property damage liability pays for repairs to another person’s vehicle or property, such as a fence or building. Neither one pays for your own injuries or your own car.
An Example of Liability Limits in Action
Here’s a hypothetical example. You cause a crash that injures two people. One has $70,000 in medical bills, and the other has $20,000. The other car needs $30,000 in repairs. You carry 50/100/25 limits:
| Cost | Amount | Your policy pays | Left for you |
|---|---|---|---|
| First person’s injuries | $70,000 | $50,000 (per-person limit) | $20,000 |
| Second person’s injuries | $20,000 | $20,000 | $0 |
| Other car’s repairs | $30,000 | $25,000 (property damage limit) | $5,000 |
| Total | $120,000 | $95,000 | $25,000 |
Even though the total injury costs of $90,000 are under the $100,000 per-accident limit, the $50,000 per-person cap still applies. That’s where the gap comes from.
What Happens If Damages Exceed Your Limits
Your insurer pays up to your limits, and the rest can fall on you. The NAIC’s consumer guide says, “if the court judgment or settlement is more than your policy limits, you will have to pay the difference.” The Texas Department of Insurance puts it plainly: “you might have to pay the rest out of your own pocket.”
Split Limits vs. Combined Single Limits
Most policies use split limits, with three separate caps. Some insurers also offer a combined single limit, which is one total amount per accident that covers both injuries and property damage. Utah’s law, for example, accepts $90,000 per accident as an alternative to its split-limit minimum. In Pennsylvania, the state insurance department says some companies offer a $35,000 combined single limit that meets the state’s liability minimums.
A combined limit can be more flexible. Utah’s $90,000 option equals the most its 30/65/25 split limits would pay in one accident ($65,000 for injuries plus $25,000 for property damage). With the combined limit, though, the money isn’t capped at $30,000 for any one injured person.
State Minimum Liability Limits
Every state sets its own minimums, and they vary a lot. Here are some examples as of September 2026:
| State | Minimum liability limits | Notes |
|---|---|---|
| Pennsylvania | 15/30/5 | Among the lowest in the country |
| Louisiana | 15/30/25 | Low injury limits, with a higher property damage limit |
| California | 30/60/15 | Rose in 2025 and is scheduled to rise to 50/100/25 in 2035 |
| Maryland | 30/60/15 | Also requires $2,500 of PIP, which can be waived, and uninsured motorist coverage |
| Texas | 30/60/25 | PIP and UM/UIM are included unless you reject them in writing |
| New York | 25/50/10 | $50,000/$100,000 for death |
| Wisconsin | 25/50/10 | Also requires uninsured motorist coverage of 25/50 |
| Florida | $10,000 property damage | Bodily injury liability isn’t required for most drivers |
| Virginia | 50/100/25 | Rose in 2025 |
| New Jersey | 35/70/25 | Rose in January 2026 for a Standard Policy. A lower-cost Basic Policy is also allowed |
| Massachusetts | 25/50/30 | Rose in July 2025. Also requires $8,000 of PIP |
| North Carolina | 50/100/50 | Rose in July 2025 |
| Maine | 50/100/25 | Also requires medical payments and UM/UIM coverage |
Several states have raised their minimums recently, including California, Utah, Virginia, Massachusetts and North Carolina in 2025, and Hawaii and New Jersey in 2026. RateFrog’s car insurance comparison page lists the current minimums for every state. For what a minimum policy covers and leaves out, see our guide to what minimum coverage actually covers.
How to Choose Your Liability Limits
Regulators generally recommend going above the minimum. The NAIC’s consumer guide says, “The state-required minimum coverages are usually not enough to fully protect you and your assets.” Connecticut’s insurance department says the minimum limits “may not be enough to provide sufficient financial protection,” and the Texas Department of Insurance notes they “might be too low if you cause a multi-vehicle accident or the other driver’s car is totaled.”
The Insurance Information Institute reports that the insurance industry and consumer groups “generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.” That’s a common starting point, not a rule. To decide what fits you, think about:
- Your assets and income. Savings, home equity and investments are what’s at risk if a claim goes past your limits.
- The cost of other cars. As the Texas Department of Insurance points out, a low property damage limit can run out if you total someone else’s car.
- Your budget. The NAIC suggests buying “the most coverage you can reasonably afford.” Ask for quotes at a few levels to see the actual price difference.
When you compare prices, keep the limits the same across quotes so you’re comparing the same coverage. You can compare minimum and full coverage to see how liability fits with the coverages that protect your own car. RateFrog’s guide to how much car insurance you need puts these decisions together in one checklist.
When an Umbrella Policy Makes Sense
An umbrella policy adds liability protection above your auto and homeowners limits. The Maryland Insurance Administration’s umbrella guide gives an example: if a claim is $250,000 and your auto liability limit is $100,000, a $1 million umbrella policy would cover the $150,000 difference. The Insurance Information Institute suggests considering one if you have substantial assets to protect.
Umbrella insurers can require minimum limits on your auto policy first. GEICO, for example, requires auto liability limits of either $300,000/$300,000 for bodily injury and $100,000 for property damage, or $250,000/$500,000 and $100,000.
Frequently Asked Questions
What Does 100/300/100 Mean?
It means your policy pays up to $100,000 per injured person, up to $300,000 in total injury costs per accident, and up to $100,000 for property damage in one accident.
Does Liability Insurance Cover My Own Car?
No. Liability coverage pays for injuries and damage you cause to other people. Collision and comprehensive coverage pay for damage to your own car.
Can I Have Different Limits Than My State’s Minimum?
Yes. The state minimum is the lowest amount you can legally carry. Most insurers let you choose higher limits.
Do Liability Limits Apply Per Accident or Per Year?
Per accident. The per-person and per-accident amounts apply to each accident you cause, not to the whole policy term.
Sources
- NAIC: Consumer Shopping Tool for Auto Insurance (PDF)
- NAIC: A Consumer’s Guide to Auto Insurance (PDF)
- NAIC: Auto Insurance Consumer Guide
- NAIC: Auto Insurance
- Texas Department of Insurance: Auto Insurance Guide
- Utah Code section 31A-22-304 (PDF)
- Pennsylvania Insurance Department: Auto Insurance
- Connecticut Insurance Department: Auto Insurance
- Insurance Information Institute: 8 Auto Insurance Myths
- Maryland Insurance Administration: Umbrella Insurance
- GEICO: Umbrella Insurance Requirements
- California DMV: Insurance Requirements