What do the numbers in liability insurance mean?

The numbers in liability insurance mean that an insurer will only pay for bodily injury or property damage liability claims up to a certain dollar amount. These policy limits are typically expressed as three numbers that each represent an amount in thousands of dollars, like 25/50/25. With a 25/50/25 policy, the insurance company will pay up to $25,000 per person for bodily injury claims and up to $50,000 in bodily injury claims per accident. Additionally, it will cover up to $25,000 in property damage for each accident.

Every liability car insurance policy includes limits that are expressed with these numbers, and the order and notation are always the same. Once you know what the numbers in liability insurance mean, you can better understand how your own policy works. 

What the Numbers in Liability Insurance Mean

1^st Number: The maximum amount of bodily injury liability coverage per person.

2^nd Number: The maximum amount of bodily injury liability coverage per accident.

3^rd Number: The maximum amount of property damage liability coverage per accident.

Examples of Liability Insurance Limits

It’s important to remember that these coverage limits only apply to other people’s expenses after an accident that you cause. If the cost of a bodily injury or property damage liability claim exceeds your policy limits, you can be left personally responsible for covering the remaining amount. As a result, you should purchase as much liability insurance as you can afford in order to protect your finances in case you cause a severe accident.

To learn more, check out WalletHub’s guide to liability insurance.