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What Is 25/50/25 Insurance?

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Maria Neira
November 6, 2020

If you purchased a 25/50/25 auto insurance policy, that means you have $25,000 in coverage for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $25,000 for property damage liability. 

In 17 states, 25/50/25 insurance is the minimum car insurance required. The states with this minimum are: 

  • Alabama
  • Arkansas
  • Connecticut*
  • Georgia
  • Indiana
  • Kansas*
  • Kentucky*
  • Mississippi
  • Nebraska*
  • New Hampshire*
  • North Dakota*
  • Ohio
  • Oklahoma
  • Rhode Island
  • South Carolina
  • South Dakota
  • West Virginia*

*These states may require additional coverage to meet state minimum requirements.

Each state sets its own car insurance minimum requirements. Alaska and Maine, for example, have the highest minimum car insurance required. Drivers in these states must have a  policy with at least 50/100/25 insurance coverage.

Arizona set their state’s minimum liability limits at 15/30/10, and Florida drivers are only required to have 10/20/10 insurance. Check with your state’s division of motor vehicles to find out what your minimum liability limits are.

What do the numbers mean?

The three numbers on your 25/50/25 policy represent a dollar amount limit for a different type of liability auto insurance coverage.

  • Bodily injury liability per person
  • Bodily injury liability per accident
  • Property damage liability

With a 25/50/25 insurance policy, the first number represents the amount of bodily injury liability per person. This is the maximum amount your insurance company will pay out for each person that is injured in an at-fault accident. You will be responsible for any costs above $25,000 with this level of coverage.

The second number in the series represents the amount of bodily injury liability per accident. Bodily injury liability per accident is the maximum amount your insurance company will pay out for a single accident

The third number is the amount of property damage liability. Having 25/50/25 insurance means your insurer will pay a maximum of $25,000 to cover damage to another driver’s vehicle or property. An example of damaged property in an accident may include a mailbox, fence or building. 

So, let’s say you were in an accident that involved two injured people. Your 25/50/25 policy would cover each person up to $25,000. But if you were in an accident with more than two people, let’s say four or five your insurance policy would only pay out up to $50,00 and no more than $50,000 for a single individual.

Understanding how much coverage you have is important. State minimum requirements for auto insurance often aren’t enough to cover even a small accident with just a few injured parties. That means you would end up paying money out of your own pocket.  

>>LEARN MORE: Understanding your car insurance deductible

Is 25/50 insurance enough? 

It’s highly recommended to get more than the required state minimum car insurance. But if you do have a policy with the minimum requirements, other types of auto insurance coverage can be added to your policy for more protection. 

Having full coverage protects you financially giving you peace of mind while on the road. 

Collision – To help pay for any repairs to your car, you need collision coverage. Damage to your own vehicle isn’t typically covered under property damage liability. If you have a leased car or an auto loan, your financing company may require you to have collision coverage.

Comprehensive – If your vehicle is vandalized, stolen or is damaged from a falling object, comprehensive coverage will help pay for repairs. This type of coverage does include a deductible, so you will have to pay that before your insurance kicks in.

Uninsured/underinsured motorist – Uninsured motorist coverage is important because it helps pay for medical bills or vehicle repairs if an uninsured driver hits you. Underinsured coverage comes into play if you’re in an accident and the other driver is at fault but doesn’t have enough insurance to cover all the expenses.

Medical payments coverage – Also known as MedPay, this coverage pays for expenses if you require a visit to the hospital or need X-rays or surgery after an accident. Medical payments coverage also helps pay for medical costs for passengers in the vehicle.

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