Quick answer: liability limits written as three numbers, such as 25/50/25, are in thousands of dollars. The first number is the most your policy pays for injuries to any one person ($25,000), the second is the most it pays for all injuries in one accident ($50,000), and the third is the most it pays for property damage in one accident ($25,000). Liability coverage pays other people, not you, and if the damages you cause exceed these limits, you can be held personally responsible for the rest. That is why many drivers choose higher limits such as 100/300/100.
Liability limits are the most important numbers on your auto insurance declarations page, and the least understood. They decide how much protection stands between you and a lawsuit after a crash you cause. A policy can look complete, with collision, comprehensive and roadside assistance, and still leave you badly exposed if the liability limits are too low.
This article explains how to read liability limits, how they apply in real claims and how to decide what to carry. For the bigger picture on coverage types, premiums and claims, see our car insurance guide.
This is general educational information, not legal advice, and Pro Insurance Info is not an insurance company. How limits apply depends on your policy wording and state law, so read your policy and check your state insurance department’s consumer guides. Sources: National Association of Insurance Commissioners (NAIC) auto insurance consumer guidance; Insurance Information Institute (III); state insurance department minimum coverage publications, including California, Texas, Alaska and Maine; standard personal auto policy forms filed with state regulators. Checked October 2026. Questions: hello@proinsuranceinfo.com.
What Liability Coverage Pays For
Liability coverage pays for harm you cause to other people while driving. It has two parts:
- Bodily injury liability pays for other people’s injuries: medical bills, lost wages, pain and suffering and, in serious cases, funeral costs. It covers people in the other car, your own passengers in many states and pedestrians or cyclists you hit.
- Property damage liability pays to repair or replace other people’s property: their car, a fence, a mailbox, a building or a utility pole.
Most policies also pay for your legal defense if you are sued over a covered accident. Under many standard policy forms, defense costs are paid in addition to the limits, but the insurer’s duty to defend generally ends once it has paid out the full limit.
Liability coverage does not pay for your own injuries or your own car. Those are handled by other coverages, such as collision, MedPay, personal injury protection and uninsured motorist coverage, described in our guide to the types of auto insurance coverage.
How to Read Split Limits Like 25/50/25
Most U.S. auto policies use split limits, which set separate caps for different parts of a claim. The numbers are in thousands of dollars:
| Number | What it limits | In a 25/50/25 policy |
|---|---|---|
| First | Bodily injury per person | Up to $25,000 for any one injured person |
| Second | Bodily injury per accident | Up to $50,000 total for all injured people in one crash |
| Third | Property damage per accident | Up to $25,000 for all property damage in one crash |
The per-person limit applies within the per-accident limit. So in a 25/50/25 policy, one person can never receive more than $25,000 for injuries, and everyone injured in a single crash shares no more than $50,000.
You may also see a fourth figure on some policies or state rules, such as a separate limit for death. New York, for example, sets higher minimums when an accident causes death than when it causes injury only, according to the state’s Department of Financial Services.
How Limits Apply in a Claim: Worked Examples
Numbers make split limits clearer. These examples are simplified illustrations, assuming fault is clear and the policy has 25/50/25 limits.
Example 1: One injured person. You cause a crash that injures one driver, with $40,000 of medical bills and lost wages, and $12,000 of damage to the other car. Your policy pays $25,000 toward the injuries (the per-person cap) and the full $12,000 for the car. The remaining $15,000 for injuries could be sought from you personally.
Example 2: Three injured people. You cause a crash that injures three people, with damages of $30,000, $20,000 and $10,000. The per-person cap limits the first person to $25,000, and the per-accident cap limits the total for all three to $50,000. Your insurer pays up to $50,000 in total, leaving $10,000 or more unpaid, depending on how the claims are settled.
Example 3: Expensive property damage. You rear-end a newer SUV and push it into a second car. Repairs total $38,000. Your property damage limit pays $25,000, and the other owners or their insurers can pursue you for the remaining $13,000.
The same crashes under 100/300/100 limits would be fully covered in each example. That gap is the reason most guidance recommends more than the minimum.
Combined Single Limits vs. Split Limits
Some policies use a combined single limit (CSL) instead of split limits. A CSL sets one total amount, such as $300,000 or $500,000, that applies to all bodily injury and property damage from one accident, with no separate per-person cap.
| Feature | Split limits (100/300/100) | Combined single limit ($300,000 CSL) |
|---|---|---|
| Per-person injury cap | $100,000 | None; up to $300,000 for one person |
| Total injury cap | $300,000 | $300,000 shared with property damage |
| Property damage cap | $100,000 | $300,000 shared with injuries |
| Flexibility | Less | More, because the full limit can go where needed |
A CSL can offer more flexibility because the whole limit can go to one badly injured person or to expensive property damage. It is more common on higher-end personal policies, umbrella requirements and commercial auto policies.
State Minimum Liability Limits Vary Widely
Nearly every state sets a minimum, and the numbers range from very low to moderate. A few examples from state insurance regulators:
| State | Minimum liability limits |
|---|---|
| California | 30/60/15 since January 1, 2025 |
| Texas | 30/60/25 |
| Alaska | 50/100/25 |
| Maine | 50/100/25, plus other required coverages |
Florida is unusual: most drivers must carry $10,000 of property damage liability and $10,000 of personal injury protection, but bodily injury liability is not required unless certain events, such as some crashes or violations, trigger it. Check your own state’s current figures before you buy, since minimums change.
What Happens When Damages Exceed Your Limits
If a court awards more than your policy pays, or a settlement demand exceeds your limits, the injured party can pursue you personally for the difference. Depending on your state’s laws, collection can include wage garnishment, bank account levies or liens on property. Some assets, such as many retirement accounts and a portion of home equity in some states, may have legal protection, but rules vary.
In practice, many claims settle within policy limits, especially when the at-fault driver has few assets. But that is not a reason to carry low limits if you have savings, a home or a good income. Liability coverage exists to protect those things.
If you are ever sued for more than your limits, your insurer should tell you in writing. Consider talking with a personal attorney about protecting your interests.
How to Choose Your Liability Limits
Use this step-by-step approach:
- List your assets: savings, non-retirement investments, home equity and other property.
- Consider your income, since future wages can be at risk in some states.
- Get quotes at several levels, such as 50/100/50, 100/300/100 and 250/500/100. The price difference between levels is often smaller than people expect.
- Match uninsured and underinsured motorist limits to your liability limits where possible.
- Add an umbrella policy if your assets exceed the highest auto limits you can buy, or if you have teen drivers, a pool or rental property.
The Insurance Information Institute suggests that most drivers consider at least 100/300 for bodily injury liability. Umbrella insurers commonly require underlying limits of 250/500 or a similar combined limit. Our guide to umbrella insurance explains how the layers work together.
Do Not Forget Property Damage Liability
Property damage limits often get less attention, but newer cars, trucks and electric vehicles can cost far more than $25,000 to repair or replace, and a single crash can involve several vehicles or a building. Many drivers raise property damage to $100,000 for a small added cost.
Liability Limits and Your Own Protection
Raising your liability limits protects other people’s claims against you. It does nothing for your own injuries if the other driver is at fault and underinsured. That is the job of uninsured and underinsured motorist coverage. With roughly one in seven U.S. drivers uninsured, according to Insurance Research Council estimates, matching those limits closes the gap. Read uninsured and underinsured motorist coverage explained for details.
Liability Limits When Someone Else Drives Your Car
In most states, auto insurance generally follows the car. If you lend your car to a friend or relative with permission, your liability coverage usually responds first if they cause a crash, and their own policy, if they have one, may apply as excess coverage once your limits are used up. That means your limits, not theirs, decide how much protection is available in the first layer.
This is one more reason to think carefully before choosing minimum limits. A crash caused by someone else in your car can still lead to claims against you as the owner in some states, and the claim will be paid from your policy. Some policies also exclude certain drivers by name, and excluded drivers have no coverage at all under your policy, so never let a named excluded driver use your car.
Teen Drivers Raise the Stakes
Adding a teen driver increases the chance of a claim. The Insurance Institute for Highway Safety reports that, per mile driven, drivers ages 16 to 19 are nearly three times as likely as drivers 20 and older to be in a fatal crash. Parents are usually the named insureds and the vehicle owners, so a serious crash involving a teen can lead to claims that reach the parents’ assets. Many families raise liability limits, and consider an umbrella policy, when a teen starts driving.
Common Mistakes With Liability Limits
- Choosing limits by price alone without looking at what you have to protect.
- Keeping the same limits for years while your home equity, savings and income grow.
- Raising liability but leaving uninsured motorist coverage at the minimum.
- Overlooking the property damage limit, which can be used up by a single newer vehicle.
- Assuming an umbrella policy will cover you without meeting its required underlying limits.
How Liability Claims Are Handled
When you cause a crash, the injured people usually file claims with your insurer. An adjuster investigates fault, reviews medical records and repair estimates, and negotiates a settlement within your limits. You are required to cooperate, report the accident promptly and send any legal papers you receive to your insurer right away. Our explainer on how car insurance claims work walks through each stage.
Frequently Asked Questions
What does 25/50/25 mean on car insurance?
It means $25,000 of bodily injury coverage per person, $50,000 of bodily injury coverage per accident and $25,000 of property damage coverage per accident.
Is 25/50/25 enough car insurance?
It meets the legal minimum in some states, but it may not cover a serious crash. Many drivers, especially those with savings or a home, choose 100/300/100 or higher.
What is better, split limits or a combined single limit?
A combined single limit can be more flexible because the whole amount can go to whatever damages occur. At the same total, a CSL usually provides more effective protection than split limits, but it may cost more.
Does liability insurance cover my own car?
No. Liability pays for damage and injuries you cause to others. Collision covers damage to your own car, and MedPay, PIP and uninsured motorist coverage help with your own injuries.
What happens if I cause an accident with only minimum coverage?
Your insurer pays up to your limits, and you can be held personally responsible for any amount above them, through a settlement or court judgment.
The Bottom Line
Liability limits are three numbers that decide how much protection you have after a crash you cause: per-person injuries, per-accident injuries and property damage. State minimums keep you legal, but they can leave a large gap in a serious crash. Price out higher limits such as 100/300/100, match your uninsured motorist coverage and add an umbrella when your assets call for it.
