Understanding your limits
Three numbers decide what your policy is actually worth. Most people have never read them.
Liability limits are usually written as three numbers — something like 100/300/100. They're the maximum your insurer will pay, and above them the money comes from you.
It's the most consequential line on a policy and the one shoppers pay least attention to.
What the three numbers mean
- The first — bodily injury liability per person
- The second — bodily injury liability per accident, across everyone injured
- The third — property damage liability per accident
Why minimums are a floor, not a recommendation
State minimums are the least you may legally carry. They were set by legislatures, in many cases a long time ago, and they haven't kept pace with medical costs or vehicle values.
A single hospital stay or a modern vehicle can exceed a minimum property damage limit outright. When the limit is exhausted, the injured party can pursue you personally — your savings, your home equity, and in some states your future wages.
Your state's actual required limits are on the state pages, with their sources and dates.
The coverage most people are short on
Uninsured and underinsured motorist coverage responds when the at-fault driver has no insurance or not enough of it.
This is the one that protects you rather than someone else, and it's frequently carried at the minimum or declined outright. Given how many drivers carry only minimum limits, being hit by someone whose coverage runs out is a realistic scenario, and your own UM/UIM limit is what stands between you and that shortfall.
Limits that aren't liability
- Collision and comprehensive — limited by the vehicle's actual cash value, not a chosen figure
- Medical payments or personal injury protection, depending on the state
- Rental reimbursement, usually a daily amount with a cap
- Roadside assistance, often per-incident
How to choose
A reasonable approach is to carry liability limits at least equal to what you could lose — savings plus home equity plus anything else reachable. Raising liability limits is often less expensive than people expect, because severe claims are rare.
If your assets exceed what an auto policy will write, an umbrella policy sits above it and is usually the cheaper way to buy the top layer.
Common questions
Bodily injury liability of 100 per person and 300 per accident, and property damage liability of 100 per accident, in thousands. Those are the caps — above them the money comes from you.
They're the legal floor, set by legislatures and often unchanged for years while medical and vehicle costs rose. A single hospital stay or a modern vehicle can exhaust a minimum limit outright.
Uninsured and underinsured motorist. It protects you rather than someone else, and it's the coverage that responds when the at-fault driver carries minimum limits or nothing at all.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.