The amount of insurance you purchase is usually called your policy limit, or limit of coverage. It's the maximum amount your insurance company will pay for a particular loss or losses, subject to the terms and conditions of your insurance policy. Each policy is unique and may include a variety of limits.

State minimum-coverage limits are too low to protect the assets of most motorists. Unless your income and assets are minimal, buy at least $100,000 per person, $300,000 per accident. Property damage: Property-damage liability covers repair or replacement of other people's cars and property.