Every state requires a driver to carry a specified minimum limit of liability coverage. States generally require property damage liability coverage and bodily injury liability coverage.

The mandatory coverage limits differ from state to state. For example, in California, drivers are required to have at least $5,000 of property damage liability coverage. In Texas, the minimum amount for property damage liability coverage is $25,000. In Nevada, it's $10,000.

A limit is the maximum amount your policy will pay for a covered claim. You can choose your liability coverage limits when you buy car insurance or adjust them later with the help of your insurance provider.