How a liability split works
Liability coverage is written as three numbers: bodily injury per person, bodily injury per accident, and property damage per accident. A 100/300/100 policy pays up to $100,000 for one injured person, up to $300,000 for everyone in a single crash, and up to $100,000 for property you damage - another car, a guardrail, a storefront. The limits cap what the insurer pays; anything above that becomes your problem, because the at-fault driver stays legally responsible for the rest of a judgment.
Example: you rear-end two cars and one driver needs surgery. Bills hit $180,000 while your limits are 50/100. The insurer pays its maximum $100,000 across the injured people, and the remaining $80,000 can be pursued directly against you.
What states require
Minimums vary widely, and a few states set the floor remarkably low:
| State | Minimum limits (per person / per accident / property) |
|---|---|
| California | 15 / 30 / 5 |
| Texas | 30 / 60 / 25 |
| Florida | 10 / 20 / 10 |
| New York | 25 / 50 / 10 |
| New Jersey | 25 / 50 / 25 |
| Pennsylvania | 15 / 30 / 5 |
| Illinois | 25 / 50 / 20 |
| Ohio | 25 / 50 / 25 |
| Georgia | 25 / 50 / 25 |
| North Carolina | 30 / 60 / 25 |
| Washington | 25 / 50 / 10 |
| Massachusetts | 20 / 40 / 5 |
Requirements change over time, so confirm yours with your state department of insurance before relying on these numbers. Michigan adds property protection on top of its 50/100/10 split, and several states set property damage minimums even lower than the ones listed above.
Why minimums are not a safety net
Minimum limits were written decades ago and priced for minor dents, not modern medical care. A single night in a trauma unit can approach $10,000, and a spinal injury or long rehabilitation passes six figures quickly. Once bills exceed your limits, the injured party can sue you for the difference, and in most states judgments attach to wages and property you own. Total two cars on a $10,000 property damage limit and replacing a late-model pickup alone can exceed the limit before anyone is hurt.
Carry the minimum only when you understand and accept the exposure. It is the cheapest way to stay legal and often the most expensive way to stay unprotected.
How much coverage you should carry
Treat 100/300/100 as the working floor for drivers with assets or income to protect, and consider 150/300/150 once savings, home equity, or future earnings are on the table. Two cheap upgrades do most of the work: raising bodily injury from 50/100 to 100/300 often adds only a few dollars a month, and a $1 million umbrella policy - which sits above your auto limits - commonly runs $150 to $350 a year once the required base limits are in place. Re-run the math whenever life changes: a new house, a teen driver, or a higher salary all raise the target.
Uninsured motorist and medical payments
Uninsured and underinsured motorist coverage (UM/UIM) pays you when the at-fault driver has none or too little; given how many drivers carry bare minimums, matching your UM/UIM limits to your liability limits is one of the better values in the policy. Medical payments or personal injury protection covers your own injuries regardless of fault, which matters in at-fault states with high health deductibles. No-fault states rewrite these rules, so check what your state mandates before trimming anything.
Related pages
- How to get the cheapest car insurance rates
- Rental car insurance: do you need it?
- Non-owner car insurance explained
- Auto insurance hub
Frequently Asked Questions
What is the difference between per-person and per-accident limits?
Per-person caps what one injured person can receive, while per-accident caps the total for everyone in one crash. Two people injured in one crash are paid out of the per-accident limit, subject to the per-person cap each.
Does liability insurance cover my own car?
No. Liability pays other people for injuries and property damage you cause. To repair your own vehicle you need collision and comprehensive coverage, which are separate line items on the policy.
Is an umbrella policy better than higher auto limits?
An umbrella adds a large layer - usually $1 million and up - above your auto or home limits for a modest premium. Carriers require you to raise base limits first, so most drivers buy both together.
How often should I review my limits?
Once a year at renewal, and right after any major purchase, new driver, or move to another state. Limits that were fine for a rented apartment can be thin once you own a home.
What does full coverage mean?
There is no official definition. Insurers use it for a policy that adds collision and comprehensive to whatever liability limits you chose - it never means the state minimum, and it never means unlimited.
Last updated: 2026-10-01