What is a policy limit of liability and how does it affect my car insurance premium?

Your car insurance liability coverage limits, also referred to as limit of liability, are the most your insurance will pay to another party if you are legally responsible for an accident. Policy liability limits are often comprised of two separate dollar amounts — for example, $100,000/$300,000. The first amount ($100,000) would be the per-person policy limit, while the second amount ($300,000) is the total limit payable for a covered accident.

To keep monthly premiums low, drivers often opt for lower liability limits. Choosing a higher limit provides you more protection if an accident occurs. It is important to choose a liability limit you can afford in the event of a loss. Contact one of our agents for more information about your policy limits and options. Coverage limits may vary by coverage type and state.