Liability limits explained: what 50/100/50 really means
Those three numbers on your policy decide who pays if you cause a crash.
Liability coverage pays for injuries and damage you cause to other people. It is shown as three numbers, such as 50/100/50, and each number is in thousands of dollars.
| Number | What it covers | In 50/100/50 |
|---|---|---|
| First | Bodily injury, per person | $50,000 |
| Second | Bodily injury, per accident (all people) | $100,000 |
| Third | Property damage, per accident | $50,000 |
Why state minimums are often not enough
Every state sets minimum limits, and many are low compared with today's medical and vehicle repair costs. If you cause damage above your limits, you can be personally responsible for the rest. A single newer pickup or SUV can cost more than a $25,000 property damage limit to replace.
How to pick limits
A common rule of thumb is to carry enough liability coverage to protect what you own, including savings and home equity. Many drivers find that moving from state minimums to 100/300/100 costs less than they expect, because the first dollars of coverage are the most expensive to insure.
Florida is different
Florida is a no-fault state that requires Personal Injury Protection and Property Damage Liability but does not require bodily injury liability for most drivers. That means many Florida drivers carry no protection if they injure someone else. If you drive in Florida, ask for bodily injury liability quotes even though it is optional.
Bottom line
When you compare quotes, make sure every quote uses the same liability limits. A cheaper quote with lower limits is not a better price; it is less coverage.
This guide is general information from Rate Now Quote, not insurance, legal or financial advice. Coverage rules vary by state and insurer.