insurance limits

Insurance limits are the maximum amounts an insurance company will pay for a covered claim. These limits can apply per incident, per year, or in total over the policy term. For example, if your auto insurance has a liability limit of $50,000, the insurer will pay up to that amount for damages or injuries you’re responsible for. Anything beyond that would be your responsibility. Understanding these limits helps you know the extent of your coverage and when you might need additional protection or personal funds.