What’s a policy limit of liability and how does it affect my car insurance premium?
Your car insurance liability coverage limits – also referred to as limit of liability – are the most your insurance will pay to another party if you are legally responsible for an accident. Policy liability limits are often composed of two separate dollar amounts – for example, $100,000/$300,000. The first amount ($100,000) would be the per-person policy limit, while the second amount ($300,000) is the total limit payable for a covered accident. To keep monthly premiums low, drivers often opt for lower liability limits. Choosing a higher limit provides you more protection if an accident occurs. Choose a liability limit you can afford in the event of a loss. Ask your local independent agent or Travelers representative for more information about your policy limits and options. Coverage limits may vary by coverage type and state.