Liability insurance pays for damage you may do to:
1) someone else, or
2) their property.
Auto liability insurance policies have separate limits for:
1a) Bodily Injury, per injured person,
1b) Bodily Injury, per accident, regardless of the number of people injured, and
2) Property Damage
So auto liability policies have limits that look like this:
50 / 100 / 50
Meaning the insurance company will pay out up to:
1a) $50,000 in bodily injury claims per injured person,
1b) $100,000 in bodily injury claims per accident, and
2) $50,000 in property damage claims per accident
Limits commonly offered by insurance companies include:
- State minimum
- 25 / 50 / 25
- 50 / 100 / 50
- 100 / 300 / 100
- 250 / 500 / 100
Everything else being equal, liability policies with higher limits cost more than liability policies with lower limits.
Collision and Comprehensive Limits
Since collision and comprehensive insurance apply to losses to your vehicle, the limit of this coverage is, basically, the market value of the vehicle.
If the cost to repair damages exceeds a pre-determined percentage of the vehicle's value (usually 80%), the insurance company will declare the vehicle "totaled" and pay the policy holder 100% of the vehicle's value.
Everything else being equal, comprehensive and collision policies on higher-value vehicles (whose limits are naturally higher) are higher than comprehensive and collision policies on lower-value vehicles.