What’s Your Liability Number?

Two men in a car crash.

Auto liability limits can seem complicated, but understanding them is critical to ensuring you are properly protected. Typically, the main auto liability limits are represented by three numbers separated by a forward slash. For example, it may look like this: 30/60/25. These numbers represent the maximum amounts (in thousands of dollars) that the insurance company will pay for specific types of claims. Let’s explore these numbers in detail.

First Number — The first number is bodily injury liability limit per person, which is the most your insurer will pay for one person injured in an accident that you caused. For example, let’s say you have 30/60/25 liability coverage. If you are responsible for a car accident that severely injures another driver and a passenger, your insurance company will pay up to $30,000 for bodily injury expenses for each person in the accident. However, if medical costs exceed $30,000 per person, you would be personally responsible for the remaining balance.

Second Number — The second number represents the total amount your insurance company will pay for bodily injuries per accident. Using the 30/60/25 limits, this means that the insurer will pay a maximum of $60,000 for bodily injuries in an accident, no matter how many people are injured. Again, if medical expenses go over this $60,000 limit, you would be held accountable for any amount above this limit.

Third Number — The third number is property damage liability limit per accident, which is the maximum payout for property damage in an accident. With 30/60/25 limits, your insurer will cover up to $25,000 for damages to someone else’s property, including cars, homes, and businesses. In a severe accident where multiple cars are involved, the cost to repair or replace these cars can easily exceed your liability limits, leaving you to pay the balance out of pocket.

Choosing the right auto liability limits can give you peace of mind knowing that you are properly covered. While it may be easier to select your state’s minimum liability requirements, it could leave you vulnerable to devastating financial losses.

Contact a Westwood agent today to make sure you have enough liability coverage for your car.

Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.