Understanding Auto Liability Limits (Coverage Per Person, Per Accident)

There's a maximum amount that your insurer can pay for a covered incident on your auto liability policy. This figure is the coverage limit for the specific event. If the cost of the covered accident exceeds your policy's coverage limit, you'll have to pay for the extra liability out of pocket.

It's important to understand how car insurance liability limits work. Also, figure out the best way to maximize coverage and minimize the risk of a financial loss if you're ever held liable for an auto accident. Read on to learn more.