Last Updated on October 27, 2026 by Syed Sarim Naqvi
Auto liability limits are written as three numbers, such as 25/50/25, meaning $25,000 per person and $50,000 per accident for injuries you cause plus $25,000 for property damage, and most experts recommend 100/300/100 instead. The catch is that the minimum can leave you paying out of pocket after a serious crash, while sources say moving up costs surprisingly little: CarInsurance.com lists $738 a year for state minimum liability and $829 for 50/100/50.
Key Takeaways
- In 25/50/25, the first two numbers are bodily injury per person and per accident and the third is property damage, and most states set minimums near this level, per Ocho and Jerry
- The Insurance Information Institute, cited by CarInsurance.com, recommends 100/300 bodily injury limits, and Policygenius and Jerry recommend 100/300/100
- Fox Business reports liability-only cover at 50/100/50 averages $647 a year, about $54 a month, and moving from state minimum to 50/100/50 costs about $12 a month on average
- Policygenius says full coverage at 100/300/100 averages $1,822 a year, only about $170 more than at 50/100/50
- Ocho says if a serious crash costs $200,000, a 25/50 policy leaves you covering $150,000 or more yourself
What Do the Three Numbers Mean?
Policygenius explains that the first two numbers in 25/50/25 are your bodily injury liability limits, with the third the property damage limit, and Jerry gives the example of Missouri’s 25/50/25: $25,000 per person and $50,000 per accident for injuries, plus $25,000 for property damage. Bankrate adds that if your costs exceed the limits you may need to pay out of pocket, and that liability is a standard part of state minimum requirements. Liability cover pays when you are at fault; it does not repair your own car.
Is Liability the Same as Full Coverage?
No. Bankrate says full coverage most commonly means carrying at least your state’s minimum liability plus comprehensive and collision. Ocho notes limits such as 250/500 describe only bodily injury liability and are not full coverage by themselves. Jerry adds that most lenders require full coverage on a leased or financed vehicle regardless of state minimums.
| Limits | Meaning | Typical Use |
|---|---|---|
| 25/50/25 | $25,000 per person, $50,000 per accident, $25,000 property | Common state minimum |
| 50/100/50 | $50,000 per person, $100,000 per accident, $50,000 property | Moderate step up |
| 100/300/100 | $100,000 per person, $300,000 per accident, $100,000 property | Recommended by Policygenius, Jerry and III for injuries |
| 250/500/100 | $250,000 per person, $500,000 per accident, $100,000 property | Higher assets or more protection |
How Much More Does Higher Liability Cost?
Bankrate’s table shows average full coverage of $2,548 at 50/100/50 and $2,670 at 100/300/50, a difference of $122, and notes higher limits cost more but give more protection. Policygenius gives $1,638 for full coverage at 50/100/50 and $1,822 at 100/300/100, describing the gap as $170 a year. CarInsurance.com says an annual state minimum liability policy costs $738 while 50/100/50 liability-only costs $829, and Fox Business puts the average 50/100/50 liability-only policy at $647. The figures differ by source and year, but all show the step up is modest. As an illustration, a $12 monthly increase is $144 a year.
How Much Do You Need?
Fox Business says the more assets you own that could be at risk in a lawsuit, the higher the limits you need, and quotes an expert saying $25,000 of property damage tends to be the state minimum but does not cover much. Ocho says most drivers should aim for at least 100/300 and consider 250/500 if they have moderate to high assets. Policygenius notes if 100/300/100 is unaffordable, buy the highest you can afford. An umbrella policy can add limits above auto liability.
What Should You Check?
- State minimum: know it, then compare quotes at higher limits
- Per person vs per accident: a single serious injury can exceed the per-person cap
- Property damage: Fox Business quotes an expert saying $25,000 does not cover much
- Lender rules: financed cars need full coverage
- Umbrella: consider extra liability if your assets are significant
How Does This Connect to Other Cover?
Extra liability is in Umbrella Insurance Explained, your own injuries in PIP vs MedPay Explained and Uninsured and Underinsured Motorist Coverage Explained. Pricing is in Credit-Based Insurance Scores Explained and Telematics Car Insurance Explained, and loans in Gap Insurance Explained.
FAQ
What does 25/50/25 mean?
$25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage.
Is state minimum enough?
Many sources say no; serious crashes can exceed it.
What limits are recommended?
100/300/100 by Policygenius and Jerry, and 100/300 bodily injury by III.
How much more does 100/300/100 cost?
About $170 more a year than 50/100/50, per Policygenius.
Is 250/500 full coverage?
No. It describes only bodily injury limits.
What does liability pay for?
Injuries and damage you cause to others when you are at fault.
Does it cover my own car?
No. Collision and comprehensive do.
Glossary
- Bodily injury liability: cover for injuries you cause to others.
- Property damage liability: cover for others’ property you damage.
- Split limits: separate per-person and per-accident limits.
- Full coverage: liability plus comprehensive and collision.
- Umbrella: extra liability above your auto limits.
Sources
- Bankrate: Auto Liability Insurance (50/100/50 vs 100/300/50 costs, full coverage meaning)
- Policygenius: What Does 25/50 Mean on an Auto Insurance Policy? (limit meaning, $1,638 and $1,822)
- Fox Business: Liability Car Insurance Coverage and Cost ($647, $12 a month, property damage advice)
- CarInsurance.com: Liability Car Insurance ($738 and $829, III recommendation)
- Ocho: What Does 250/500 Mean in Auto Insurance? ($200,000 crash example, 100/300 guidance)
- Jerry: How Much Car Insurance Do You Need? (Missouri example, lender rules)
Related reading: Motorcycle Insurance Explained · Total Loss Car Insurance Explained · Classic Car Insurance Explained
Published October 2026. Minimum limits and prices vary by state, insurer and year and change often; always read your state’s minimums and your policy’s liability limits, and refresh this article periodically. Averages are illustrations, not quotes.
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