Liability limits
Liability coverage pays for the injuries and property damage you cause to others — and the limits you choose decide how much protection, and how much of your own assets, are on the line. Here's how the numbers work and how to think about how much to carry.
Liability coverage is the part of your auto policy that pays for injuries and property damage you cause to others when you are at fault. It does not cover your own vehicle or your own injuries — it protects other people from the financial consequences of your mistakes. The limits you choose determine how much your insurer will pay on your behalf, and how much of your own assets remain exposed if a claim exceeds those limits.
How the three numbers work
Auto liability is written as three numbers — for example, 100/300/100. Each number represents a dollar limit in thousands.
The first number is the most your policy pays for injuries to any single person in an accident you cause ($100,000 in this example). The second number is the total payout cap for all injuries across everyone hurt in one accident ($300,000). The third number is the maximum for property damage — the other person's vehicle, a fence, a building — per accident ($100,000).
When a claim exceeds your limits, you are personally responsible for the balance. That exposure — not the state minimum — is what these limits are actually protecting.
Massachusetts minimum requirements
Massachusetts requires all registered drivers to carry minimum liability limits of 20/40/5: $20,000 per person, $40,000 per accident, and $5,000 in property damage. These minimums are set by state law, not by what's actually enough. Medical bills, lost wages, and legal defense costs in a serious accident can exceed the state minimums many times over. Most licensed agents recommend at least 100/300/100 as a working baseline — and higher if you have significant assets or income to protect.
The cost of carrying more
Moving from state minimums to 100/300/100 typically costs less than most drivers expect — often $10 to $20 per month more, depending on your carrier, driving record, and vehicle. The incremental cost is small relative to the gap in protection. If your assets meaningfully exceed 100/300/100, an umbrella policy may be worth considering as a further layer.