Key points
- The at-fault driver’s bodily injury limit is usually the most their insurer will pay.
- Several injured people share the per-crash limit.
- Your own UM/UIM coverage is often the only other source of money.
Most injury claims after a car crash are paid by the at-fault driver’s liability insurance. That insurance has limits, and the limits often decide what a claim is worth in practice.
Reading 25/50/25
Policies are written as three numbers in thousands of dollars. 25/50/25 means up to $25,000 for one injured person, $50,000 for everyone hurt in the crash and $25,000 for property damage. If your injuries are worth $80,000 and the driver has a $25,000 per-person limit, their insurer will almost always pay no more than $25,000.
When several people are hurt
The per-crash limit is shared. With a 25/50 policy and three injured people, $50,000 is split among all three, so each may receive well under $25,000.
Underinsured motorist coverage fills the gap
Underinsured motorist (UIM) coverage on your own policy pays when the at-fault driver’s limit is too low. There are two types:
- Excess (add-on): pays on top of the other driver’s limit. With their $25,000 and your $100,000 UIM, up to $125,000 is available.
- Reducing (offset): pays your UIM limit minus what their policy paid. With the same numbers, up to $100,000 is available in total.
Uninsured motorist (UM) coverage pays when the driver has no insurance or flees the scene.
Steps to take
- Get the at-fault driver’s policy limit in writing. Many states require insurers to disclose it on request.
- Notify your own insurer of a possible UIM claim early. Many policies require consent before you settle with the other driver.
- Check for other coverage: the driver’s employer, the vehicle owner, an umbrella policy.
See what your coverage adds in the policy limits and UM/UIM gap calculator, and compare limits in minimum car insurance by state.