The amount your insurer will pay for a covered liability insurance claim depends on the coverage limits you choose. Each state sets minimum coverage limits for bodily injury liability and property damage liability that drivers must purchase, but you may decide to buy additional coverages. Typically, you may see three liability coverage limits on your car insurance policy:

Property damage liability limit

This is the maximum amount your insurer would pay to repair damage you cause to another party's property. The maximum payout would not exceed the limit you've set.

Bodily injury liability limit per person

This is the maximum payout for each person who's injured in an accident that you cause.

Bodily injury liability limit per accident

This is the total amount your insurer will pay out for all medical expenses for a single accident you're at fault for. It's important to set this limit at an amount that makes you comfortable—it may be needed to help pay for the medical expenses of multiple people.

Many insurers package bodily injury and property damage limits together. For example, your policy may look something like this:

25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit), or
100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)
250/500/100 ($250,000 BI per person limit, $500,000 BI per accident limit, $100,000 property damage limit)

Your coverage limits depend on the packages your insurer offers. In other words, you may not be able to choose individual limits for bodily injury or property damage coverage.