AUTO LIABILITY LIMITS EXPLAINED: PER PERSON VS PER ACCIDENT

What Do Liability Limits Mean?

Auto liability limits define the maximum amount your insurance will pay if you’re responsible for an accident. Any costs beyond those limits must be paid out of your own pocket.

Understanding the Three Numbers

Liability coverage is often shown as three numbers, such as 25/50/25. These represent limits for injury per person, total injury per accident, and property damage.

Per Person vs. Per Accident

The per person limit applies to each injured individual, while the per accident limit is the total your insurer will pay for all injuries in one incident.

Why Low Limits Can Be Risky

Choosing lower limits might save money upfront, but it can leave you financially exposed if accident costs exceed your coverage.

Higher Limits Offer More Protection

Opting for higher liability limits can provide stronger financial protection and help cover major expenses after serious accidents.

Reviewing your auto liability limits is key to avoiding unexpected out of pocket costs after an accident. Higher coverage may increase premiums but offers stronger financial protection. Let Spotlight Insurance Agency help you assess your policy, identify gaps, and ensure you are properly covered. Call 720.923.1500 today to get started!

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