Choosing the Right Liability and Property Damage Limits for Your Auto Insurance
When you buy auto insurance, one of the most important decisions you’ll make is how much liability coverage to carry. These limits protect you financially if you cause an accident that injures others or damages their property.
Understanding the Numbers
Auto liability limits are typically shown as three numbers, like 25/50/25. Here’s what they mean (in thousands of dollars):
Bodily Injury per Person – The maximum your policy will pay for injuries to one person.
Bodily Injury per Accident – The maximum your policy will pay for injuries to everyone in one accident.
Property Damage per Accident – The maximum your policy will pay for damage to another person’s vehicle or property.
Example: 50/100/50 =
$50,000 max per injured person
$100,000 max per accident for all injured people
$50,000 max for property damage
Common Coverage Levels
25/50/25 – Often the state minimum in some areas. (This is the state minimum in Idaho, in Utah its 30/65/25.)
Pros: Lowest cost.
Cons: Can be used up quickly in a serious accident, leaving you personally responsible for the rest.
50/100/50 – A step up from minimum coverage.
Pros: More protection for moderate accidents.
Cons: Still may fall short in severe injury or high-value vehicle damage cases.
100/300/100 – Considered a good baseline for many drivers.
Pros: Strong protection for most situations.
Cons: Slightly higher premiums, but better peace of mind.
250/500/250 – High-limit coverage.
Pros: Best protection for serious accidents and lawsuits, especially if you have significant assets.
Cons: Highest cost, but minimal compared to potential financial loss.
How to Choose the Right Limits
Consider your assets: The more you own, the more you have at risk in a lawsuit. Higher limits protect your savings, home, and income.
Look at medical and repair costs: Modern medical bills and vehicle values can easily exceed low limits.
Balance cost vs. risk: Higher limits cost more but often add only a small amount to your premium compared to the protection they offer.
If you can afford it, aim for at least 100/300/100. If you have substantial assets or a high income, 250/500/250 offers the best protection. State minimums may satisfy legal requirements, but they rarely provide enough coverage in a serious accide