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Texas insurance glossary

Policy limits

Policy limits are the most an insurer will pay under a given coverage, stated per person, per occurrence, or per policy period on the declarations page.

Sources checked

An auto policy carries several at once and they do not pool: the bodily injury per-person limit, the bodily injury per-crash limit and the property damage limit are three separate ceilings that happen to sit on one page.

Above the limit the claim becomes the insured’s own problem, which is why a personal umbrella exists at all and why 30/60/25 is a floor rather than a target.

What is actually on a policy is a fact about that policy, and the declarations page is the only document that settles it.

Sources: TDI — automobile insurance guide (CB020); TDI — home insurance glossary. Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • 30/60/25 30/60/25 is the shorthand for the minimum auto liability limits Texas requires: $30,000 for one injured person, $60,000 for a crash, and $25,000 for property damage.
  • Declarations page The declarations page is the summary at the front of a policy naming the insured, the vehicles or property, the coverages, the limits, the deductibles and the term.
  • Bodily injury liability Bodily injury liability is the part of an auto policy that pays other people for injuries the insured driver causes, up to a limit per person and a larger limit per crash.
  • Liability coverage Liability coverage is the part of an auto policy that pays other people for injury or damage the insured driver causes; it repairs nothing belonging to the insured.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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