What are policy limits?
Policy limits are the maximum amounts an insurance policy will pay for a covered claim, even if the real cost is higher. On car insurance they are usually written as three numbers, such as 30/60/25: the most per injured person, the most per accident, and the most for property damage.
Last checked November 9, 2026 · Official sources (4)
How do policy limits work when several people are hurt?
Example: a driver with Arizona’s minimum limits, $25,000 per person and $50,000 per accident, causes a crash that hurts three people. Their claims are worth $40,000, $20,000 and $15,000, or $75,000 in total.
The per-person limit caps the first claim at $25,000. Even then, the three capped claims add up to $60,000, which is more than the $50,000 per-accident limit. The injured people may have to share the $50,000, often after negotiation. No one gets their full value from that policy, and each has to look at UIM, health insurance or the driver personally for the rest.
Why do policy limits matter to someone who was hurt?
They often decide the size of a settlement more than the injury does. If your claim is worth $80,000 and the other driver has $30,000 of coverage, a policy-limits offer may be the most that insurer will pay. The question then becomes where the rest can come from: your UIM coverage, an umbrella policy, or the driver’s own assets.
Texas’s regulator warns drivers that if their liability coverage is not enough, they might have to pay the rest out of their own pocket and could be sued. Collecting that rest from a person, though, is often slow or impossible.
What are the minimum limits in Arizona and Texas?
| State | Minimum bodily injury limits |
|---|---|
| Arizona | $25,000 per person, $50,000 per accident. |
| Texas | Limits are the most a liability policy will pay; Texas’s floor is 30/60/25 (see the Texas page). |
These are floors, not typical amounts. Every state page lists its own minimums.
Policy limits vs. what your claim is worth
The value of your claim is what your losses are worth. The policy limit is what one insurer can be made to pay. When the value is higher than the limit, the gap does not disappear; it just has to come from somewhere else, or it goes unpaid.
Questions
How do I find out the other driver’s policy limits?
Ask the insurer in writing. Some share them only with the policyholder’s consent or once a lawsuit is filed.
What is a policy-limits demand?
It is a written offer to settle for the full limit, usually with a deadline, sent when the claim is clearly worth more than the coverage.
Can I get more than the policy limits?
Sometimes, from other sources such as your UIM coverage, an umbrella policy or the at-fault person’s assets.
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See if I’m owed moneySources (4)
- Texas Department of Insurance, checked 2026-11-09. “Liability, personal injury protection, uninsured/underinsured motorist, towing and labor, and rental coverages have dollar limits. This is the most the company will pay, even if the cost is higher.”
- Texas Department of Insurance, auto insurance glossary, checked 2026-11-09. “Liability limits - The maximum amount your liability policy will pay. Your policy must pay at least $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident.”
- Texas Department of Insurance, checked 2026-11-09. “If you don’t have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket. The other driver could sue you.”
- A.R.S. § 28-4009(A)(2)(b), checked 2026-11-09. “(i) $25,000 because of bodily injury to or death of one person in any one accident. (ii) Subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident.”