Auto insurance liability limits are the highest amount of money your auto insurance company will pay if you are involved in a crash that injures other people or damages their property and are deemed legally liable. There are three liability limits for each policy to cover bodily injury per person, bodily injury per accident, and property damage.
It’s important to choose the liability limits that are most appropriate for your circumstances.While higher limits usually mean slightly higher premiums, the enhanced coverage in the event of an accident may be worthwhile. Low limits can leave you personally responsible to pay for costs over and above what your policy covers.
Breakdown of Liability Limits
The three areas of liability coverage are usually shown as three numbers that represent bodily injury per person/bodily injury per accident/property damage. The numbers are two- or three-digit numbers as shorthand for the thousands of dollars that insurance will pay in those categories for an accident that is your fault.
For Example: 100/300/50 liability limits means that you have $100,000 for injuries to each person, $300,000 total for all injured people, and $50,000 for property damage.
The first number, bodily injury per person, is the maximum your insurance company will pay for injuries to any single person. The second number, bodily injury per accident, is the total amount insurance will pay for all injured parties combined regardless of how many people are hurt. The third number, property damage, is how much insurance will pay for damage to property like vehicles, buildings, fences, or other property. These limits are applied individually to each accident, so they would be in effect in their full amounts for a later accident.
Liability coverage does not apply to you as the policyholder. It only applies to what you can be held responsible for in causing injuries or damage. Collision, comprehensive, and personal injury coverage are used for paying your own medical or property expenses. In all cases, there is potential for the expenses to be higher than what insurance will pay. You will be expected to pay the additional costs out of your own pocket. This is why choosing limits carefully is something you should walk through with a reliable, experienced insurance agent.
How Much Liability Coverage Do I Need?
Pennsylvania requires minimum liability limits of 15/30/5, which translates to:
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$15,000 for bodily injury per person
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$30,000 total for bodily injury per accident
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$5,000 for property damage
New Jersey’s limits are higher due to recent increases in minimum coverage requirements. As of January 1, 2026, New Jersey’s auto liability minimums are 30/70/25. Although Pennsylvania has no plans to raise minimum coverage requirements, these extremely low limits are insufficient for today’s real costs.
The average hospital emergency room visit can easily reach $5,000 or more, and serious injuries that require surgery or long-term medical care will cost thousands, if not hundreds of thousands of dollars. Automobile and property damage also come with exceptionally high repair costs these days. Liability limits are the limit of what insurance will pay, but the party at fault is still responsible for the costs over that amount.
While online insurance providers make it easy to select minimum coverage limits to secure the lowest premiums, they do not offer any real world advice about the risks involved. A local agency that understands the real costs of a car accident in Southeastern PA and South NJ can provide guidance about insurance liability limits that offer meaningful protection. Limits of 100/300/50 are usually far more realistic for the majority of drivers in this region. These limits provide substantial coverage without a huge premium difference. In fact, premiums are typically less than $30 more per month for thousands more in coverage.
One of the benefits of working with a local independent agency that offers a wide range of insurance products is being able to explore insurance policies that take your big picture into account. A service-minded agent will discuss all the assets you need to protect when it comes to liability. When your home equity, retirement savings, and other property or assets are at risk in a liability claim, you should have better insurance coverage. An umbrella policy will provide an additional $1 million or more to prevent financial devastation if you are found liable in a serious accident. Umbrella policies are very affordable – usually less than $500 per year – for what they offer.
Choosing the Right Auto Coverage for Drivers in PA and NJ
Determining the appropriate liability limits for auto insurance shouldn’t be a shot in the dark. An experienced agent will look at where you live, the car you own, your driving habits and routine, and big picture asset protection needs. From there, we evaluate your risk exposure and recommend liability limits that make sense for your circumstances. Independent agencies then go a step further by shopping for auto insurance rates across multiple carriers in order to find the right balance of protection and affordability.
At Freedom Insurance Group, we have been working with drivers in Bucks, Montgomery, Philadelphia, Camden, Mercer, and Burlington Counties for over 20 years. Our agents understand this region and what our neighbors truly need in terms of liability limits in their car insurance. We are happy to explain real world scenarios to make sure our clients understand their responsibility and risk no matter which policy they choose.
If you are not confident that your current liability limits provide enough protection, or if you simply want to shop for the best rate for the actual amount of coverage you need, contact us. Our agents will do more than just quote a few policy options. We will take the time to review your individual situation so that we can guide you to the auto insurance policy choices that offer the financial protection that fits your budget and comfort level. Give us a call at 215-673-0300 or complete our online form to get started.
Frequently Asked Questions about Auto Liability Limits
What do 100/300/50 liability limits mean?
100/300/50 means your insurance pays up to $100,000 for injuries to one person, $300,000 total for all injuries per accident, and $50,000 for property damage you cause. These are commonly recommended limits that provide substantially better protection than state minimums.
Is Pennsylvania minimum coverage enough?
Pennsylvania’s 15/30/5 minimums are rarely high enough for serious accidents since medical bills and vehicle repairs often exceed these low limits. Most insurance professionals recommend at least 100/300/50 to avoid personal financial liability.
What happens if damages exceed my limits?
You become personally responsible for any costs above your policy limits, which can include wage garnishment, liens on your property, or lawsuits. This is why adequate liability coverage is crucial for protecting your assets.
Do liability limits cover my own car?
No, liability coverage only pays for damage and injuries you cause to others. Coverage for your own vehicle requires collision and comprehensive coverage on your policy.
Should I increase my liability limits?
If you have assets to protect, such as home equity or retirement savings, or if your current limits are at state minimums, increasing your liability coverage is usually a wise investment. Higher limits cost relatively little but provide significantly better financial protection.
