States require minimum levels of liability insurance. You have the option to buy more if you like. It is important to know that your liability insurance may not cover the full cost of damages you cause. If your insurance limit is $50,000 and you cause $70,000 of damage, you are responsible for that remaining $20,000, and you could be sued for it.
How it is presented
Liability coverage is often presented as a series of three numbers separated by slashes, e.g., 25/50/10. This is an example of "split limit" liability, in which the three limits of bodily injury per person, bodily injury per accident, and property damage are covered separately (as opposed to "combined limit" liability, which rolls them all into one coverage).
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