Glossary
Coverage Limits
The maximum amount your insurer will pay on a covered claim.
What is coverage limits?
Coverage limits are the maximum dollar amounts your insurer will pay on a given coverage. Liability is often expressed as three numbers like 100/300/100 — $100K per person, $300K per accident bodily injury, $100K property damage.
Details
State minimum liability limits (often 25/50/25 or lower) are inadequate for most drivers. A serious injury accident can easily exceed $300K in medical bills alone. If your assets exceed your liability limits, you’re personally liable for the excess — and at risk of lawsuit. Most financial advisors recommend at least 100/300/100, with umbrella coverage for higher net worth.