What Do My Liability Limits Mean and How Much Should I Buy?

Liability insurance coverage usually is described in three numbers: 25/50/15, for instance. These numbers refer to limits for the different types of liability coverage. These coverage limits are the most your insurance policy will pay for injuries to any one person, all persons injured in an accident and for property damage. 

The first number in the example means $25,000 is the most this policy would pay for bodily injury per person. The second number means $50,000 is the most this policy would pay for bodily injury per accident, regardless of how many people are injured. The third number means $15,000 is the most this policy would pay for any property damage you cause in one accident, regardless of the number of cars or other properties damaged. 

You should consider buying more coverage than the law requires because accidents happen every day — even to good drivers. If you do not have enough liability coverage, and you are found at fault for an accident, you would be responsible to pay for anything your insurance does not cover. Medical costs and legal costs are very high and increasing every day. If you could not afford to pay these costs out of pocket, then you should buy more than just the minimum liability coverage limits your state law requires. You should purchase the most coverage you can reasonably afford to protect your financial security.