Liability coverage is one of the most important parts of an auto insurance policy, but the limits can be confusing if you don't know what the numbers represent.
If you're responsible for an accident that injures someone or damages their property, your liability coverage may help pay those costs, up to the limits shown on your policy.
Reading the Numbers
Auto liability limits are commonly shown as three numbers, such as 100/300/100. In this example, that means:
• $100,000 bodily injury liability per person — the most the policy would pay for one person's covered injuries.
• $300,000 bodily injury liability per accident — the most the policy would pay for covered injuries to multiple people in one accident.
• $100,000 property damage liability per accident — the most the policy would pay for covered damage you cause to someone else's property.
These limits matter because once the cost of a covered claim exceeds what your policy will pay, you could be responsible for the remaining amount.
State Minimums Doesn't Always Mean Enough
Colorado requires drivers to carry minimum levels of auto liability insurance, but meeting the legal minimum doesn't necessarily mean you have enough protection for a serious accident.
Medical expenses, vehicle repairs, and other damages can add up quickly. Choosing liability limits involves more than what's required by law. Your assets, income, household, vehicles, and overall insurance structure can all factor into the decision.
Liability Is Only One Part of the Policy
Liability coverage protects against certain injuries or damage you cause to others. It doesn't replace other important parts of an auto policy, such as uninsured/underinsured motorist coverage or physical damage coverage for your own vehicle.
For households with greater liability exposure, an umbrella policy may also provide an additional layer of protection above the underlying limits on your auto and home policies.
Choosing Your Liability Limits
There isn't one liability limit that's right for every driver. I look at liability coverage as part of the larger insurance picture rather than choosing a number in isolation.
If you're not sure what your current limits mean or whether they still make sense for your situation, I'm happy to review them with you and explain your options.
