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car insurance policy limits
Car insurance policy limits are the most your insurer will pay for a covered claim. Sublimits are smaller caps inside a coverage, such as rental reimbursement per day, towing limits, or per-person injury caps.
Reader goal
Find the real payout ceiling before a claim exposes a hidden cap.
What this page helps you decide
- Decode split limits, combined single limits, and per-accident caps.
- Check sublimits for rental, towing, custom equipment, and medical coverages.
- Know deductibles reduce some claim payments separately from limits.
- Compare limits with assets, vehicle costs, medical risk, and state requirements.
A limit is the most the policy can pay under the stated rule
The declarations page shows headline limits. The policy form and endorsements explain who or what shares each limit, whether a deductible applies, and whether a smaller sublimit applies to a particular loss.
How Split Liability Limits Work
A split limit such as 100/300/100 commonly means up to $100,000 for bodily injury to one person, up to $300,000 for bodily injury to all people in one accident, and up to $100,000 for property damage in one accident. The exact contract wording controls, and defense costs may be handled differently by policy.
Per person
Caps covered bodily-injury damages for one injured person.
Per accident
Caps covered bodily-injury damages for everyone injured in the same accident.
Property damage
Caps covered damage to other people's vehicles or property in one accident.
Combined Single Limits
A combined single limit uses one maximum for covered bodily injury and property damage from an accident rather than separate buckets. Do not compare a combined limit with split limits by looking at only one number; compare the allocation flexibility and total protection.
What a Sublimit Is
A sublimit is a smaller cap within a coverage. Examples can include transportation expenses, towing, custom equipment, electronic equipment, or a particular category of property. Sublimits are policy-specific and should appear in the form or an endorsement.
Do not assume a technology sublimit exists
The previous version of this page claimed that many 2026 policies imposed standardized “battery shell,” ADAS-calibration, or “forensic” sublimits. No general state rule or standard nationwide cap was identified for those claims, so they have been removed. If an insurer limits a battery, sensor, custom-equipment, or calibration loss, the applicable policy wording should identify that restriction.
Legal Minimums Change, and Policy Types Matter
State minimums are legal floors, not a universal recommendation. Effective dates, renewal rules, and available policy types can change the answer. Use an official state source before quoting a number.
California
For standard motor-vehicle liability policies issued or renewed on or after January 1, 2025, SB 1107 increased the minimum limits to 30/60/15.
California Department of Insurance bulletinNew Jersey
For Standard Policies effective in 2026, the lowest listed liability options are 35/70 for bodily injury and $25,000 for property damage. New Jersey also offers a Basic Policy with materially different and lower protection, so “the state minimum” cannot be described accurately without naming the policy type.
New Jersey DOBI policy comparisonFor all states, use our state requirements guide as a starting point and follow its official agency link before changing coverage.
How to Choose a Limit
No single limit is “safe” for every driver. Consider the assets and income you need to protect, the vehicles and roads around you, household driving exposure, umbrella-policy requirements, and the premium difference between options. A claim can exceed any chosen limit.
- Confirm the current legal minimum and effective date.
- Identify every current liability, UM/UIM, medical, physical-damage, and optional limit.
- Ask for prices at several higher limits using the same deductible and drivers.
- Check whether an umbrella policy requires specific underlying limits.
- Read endorsements for sublimits, exclusions, and special deductibles.
- Keep the declarations page and policy form for the term you purchased.
Editorial disclaimer: This guide is educational and does not recommend a limit for a particular household. State law and policy wording vary. Verify current requirements with the official state agency and discuss personal limits with a licensed professional.
