When we review an auto policy, one of the first things we look at is the liability limit. It is the part of your policy that protects you if you cause an accident that injures someone or damages their property, and it is the part most people never think about until they need it.

What the numbers mean

Liability limits are usually written as three numbers, such as 250/500/100:

• 250: up to $250,000 for injuries to one person
• 500: up to $500,000 for all injuries in one accident
• 100: up to $100,000 for damage to other people’s property

Why state minimums can fall short

Ohio’s minimum limits are 25/50/25. A single trip to the hospital, a few weeks of missed work or a newer vehicle can go past those amounts quickly. If the costs from an accident you cause are higher than your limits, you could be personally responsible for the difference, which can put your savings, your home and future paychecks at risk.

Why 250/500 is our starting point

• It gives you meaningful protection for a serious accident.
• It is usually the minimum required if you want to add an umbrella policy later.
• The price difference between low and higher limits is often smaller than people expect.

We also recommend matching your uninsured and underinsured motorist coverage to your liability limits. That coverage protects you and your passengers if the other driver has little or no insurance.

Want to see what higher limits would cost? Call my agency at 234-254-5660 or request a call back, and we’ll take care of the rest.

This article is general information. Coverage varies by carrier and policy, so check your own policy or give us a call with questions.