Overview
Auto liability limits are usually shown as three numbers in the form XX/YY/ZZ. These numbers represent the maximum amounts your liability portion of an auto policy will pay after an accident.
The first number (XX) is the maximum bodily injury (BI) payment per injured person. The second number (YY) is the total BI payment limit per accident, and the third number (ZZ) is the property damage (PD) limit per accident or per vehicle.
For example, a 30/60/15 policy would provide up to $30,000 for a single injured person, $60,000 total for all injured parties in one accident, and $15,000 for property damage.
Key takeaways
- Liability limits are shown as three numbers: per person / per accident / property damage.
- State minimums vary and may be inadequate for serious accidents.
- Many drivers choose higher limits to reduce out-of-pocket and legal exposure.
How it works
Liability coverage pays others’ medical bills, lost wages, and property repair when you are at fault in an accident. It does not pay for your medical bills or vehicle repairs; those require other coverages such as collision or personal injury protection.
If you drive in another state that has higher minimum liability requirements than your home state, most policies will automatically meet the other state's minimums while you are there. State rules vary, so it helps to confirm how your insurer applies those adjustments.
To learn more about the basic mechanics and options for auto liability, see Understanding Auto Liability Insurance.
What it may cover (and what it may not)
Liability covers third-party injury and property damage when you are at fault up to the policy limits. It can also cover legal defense costs if you are sued after an accident, subject to policy terms.
Liability does not cover your own injuries, your vehicle damage, or intentional acts. For coverage of your vehicle or medical bills, you would look to collision, comprehensive, medical payments, or personal injury protection coverages.
For situations that involve business use, hired vehicles, or non-owned autos, see Understanding Auto Liability and General Liability Insurance for additional context.
Common mistakes to avoid
- Buying only the state minimum limits without considering real-world costs from serious accidents.
- Assuming liability covers your own medical bills or vehicle damage—these are separate coverages.
- Not reviewing whether your limits protect household members, business use, or rental/fleet situations.
Questions to ask an agent
Ask whether your limits are likely to cover medical expenses and legal costs in worst-case scenarios and whether umbrella insurance is appropriate to increase protection above your auto limits.
If you drive for work, rent vehicles, or operate multiple cars, ask how those uses affect your liability and whether you need specialized coverage; a helpful resource for rental and fleet considerations is Understanding Car Rental Insurance and Liability.
For a complimentary review of how your liability limits match your needs, you can ask an agent to evaluate options and cost-effective ways to increase protection.
Next steps
Review your current policy declarations to read your liability limits in the XX/YY/ZZ format. Compare those numbers to recommended limits and the potential costs of a severe accident in your area.
Consider increasing limits to reduce the risk of personal liability, and ask about umbrella policies that provide broader protection above auto limits. Schedule a policy review with an agent if you have questions or recent life changes that affect your exposure.
Frequently Asked Questions
What does 100/300/50 mean?
It means $100,000 bodily injury per person, $300,000 bodily injury per accident, and $50,000 property damage per accident.
Will my insurance follow me if I drive out of state?
Most policies adjust to meet the minimum liability requirements of the state where the accident occurs, but rules vary by insurer and jurisdiction.
Does liability coverage pay my medical bills after an accident?
No. Liability covers other people's injuries and property damage; your medical bills require medical payments or personal injury protection coverage.
When should I consider an umbrella policy?
Consider an umbrella policy if you have assets to protect, high income, or risks that could lead to lawsuits exceeding your auto liability limits.