Question 1

What do the liability insurance numbers 25/50/25 mean?

Accepted Answer

The numbers represent your coverage limits in thousands of dollars: $25,000 per person for bodily injury, $50,000 per accident for all bodily injuries combined, and $25,000 per accident for property damage. If one person in an accident has $30,000 in medical bills and you carry 25/50/25 limits, your insurer pays $25,000 and you're personally liable for the remaining $5,000. Higher limits like 100/300/100 provide significantly more protection.

Question 2

Is liability insurance enough, or do I need full coverage?

Accepted Answer

Liability insurance is enough only if you can afford to replace your own vehicle out of pocket and you're not financing or leasing—lenders require full coverage. If your car is worth more than a few thousand dollars or you can't afford an unexpected replacement, adding collision and comprehensive coverage (full coverage) is typically worth the additional $50 to $100 per month. Liability-only leaves you with no payout if you cause an accident that totals your own car.

Question 3

Does liability insurance cover my medical bills after an at-fault accident?

Accepted Answer

No, liability insurance only covers the other party's medical expenses, not your own. Your medical bills after an at-fault accident are covered by your health insurance, personal injury protection (PIP), or medical payments (MedPay) coverage if you've added it to your auto policy. This is one of the most common misunderstandings about liability coverage.

Question 4

What happens if I cause an accident that exceeds my liability limits?

Accepted Answer

You become personally liable for the difference, and the injured party can sue you to collect the remaining amount. If you cause $150,000 in damages but carry only 25/50/25 limits, your insurer pays up to $50,000 for bodily injury and $25,000 for property damage, leaving you exposed to a lawsuit for the remaining $75,000. This is why financial advisors and insurance professionals recommend carrying liability limits that match or exceed your net worth.

Question 5

How much does it cost to increase liability limits from state minimum to 100/300/100?

Accepted Answer

Increasing from minimum limits (often 25/50/25) to 100/300/100 typically adds $200 to $400 per year to your premium, or roughly $17 to $35 per month. The cost increase is relatively modest compared to the massive increase in protection—you're quadrupling your bodily injury coverage per person and doubling your property damage coverage. For most drivers, this is one of the best values in auto insurance.

Question 6

Do I need liability insurance if I don't own a car?

Accepted Answer

If you regularly borrow or rent cars, non-owner liability insurance provides coverage when you drive vehicles you don't own. It costs approximately $200 to $500 per year and protects you from being personally liable if you cause an accident in a borrowed vehicle. This is especially valuable if you use car-sharing services frequently or need to maintain continuous coverage to avoid rate increases.

Question 7

Will my liability insurance cover me if I drive for Uber or deliver food?

Accepted Answer

Standard personal liability insurance explicitly excludes commercial use, including rideshare and delivery services. Uber, Lyft, and delivery apps provide some liability coverage while you're actively engaged in a trip, but you need rideshare or commercial coverage to fill gaps during waiting periods. Failing to disclose commercial use can result in claim denials and policy cancellation.

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