Auto
How to read auto insurance liability limits
The three numbers on a liability quote are not a score. They are the ceiling the insurer will pay if you injure someone or damage their property.
Every state sets a minimum amount of auto liability insurance, or an equivalent bond or deposit. The minimum is a floor for driving legally. It is often far below the cost of a serious crash. Liability insurance pays other people when you are at fault. It does not repair your own car. That is what collision and comprehensive are for, if you bought them.
What 50/100/50 means
Limits are usually written as three figures in thousands of dollars. A 50/100/50 policy pays up to $50,000 for bodily injury to one person, up to $100,000 for bodily injury in one crash, and up to $50,000 for property damage. Those amounts are the insurer’s cap. Medical bills, lost wages, and a totaled vehicle above the cap can become your problem. State minimums differ. Some states split the figures this way. A few use a single combined limit. Read the declarations page rather than assuming a national standard.
The coverages people skip
Uninsured and underinsured motorist coverage responds when the other driver has no insurance or too little. In some states it is required. In others it is optional and easy to decline on a screen without noticing. Medical payments or personal injury protection, depending on the state, can pay early medical bills for you and your passengers regardless of fault. Collision covers your car after a crash. Comprehensive covers theft, fire, flood, animals, and falling objects. Lenders require both on a financed car. If the car is paid off, the decision is whether the car is worth more than the deductible plus the premium.
A higher limit is not the same as a lower deductible
Raising liability limits protects you against large claims. Lowering a collision deductible means you pay less out of pocket when your own car is repaired, and the premium usually rises. They solve different problems. If the household has savings, a home, or wages a court could reach, low liability limits are the more serious gap.
Cover Desk does not sell auto policies. Limits, no-fault rules, and uninsured-motorist law are state-specific. Check your declarations page and your state’s insurance department.