Definition:
The maximum amount of money an insurance company will pay for each coverage. For additional coverage some choose umbrella insurance to go above and beyond their home and auto liability limits. Each state sets different limits on required minimum coverage for automobile insurance.
Examples:
Jason decided to go with the minimum policy limits required by law when he bought his policy. Unfortunately he got into an accident that was his fault and he found, like many others, that his minimum limits did not cover the entire cost required and he had to pay a large amount of his own money to cover his legal liability responsibility.
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