coverage limits

Coverage limits are the maximum amounts an insurance policy will pay for a covered claim.

These caps appear throughout insurance—auto, health, homeowners, liability—and define the boundary between what the insurer covers and what the policyholder must pay out of pocket.

Policies typically specify limits per incident, per person, or as an aggregate over the policy period.

Her auto policy had liability coverage limits of $100,000 per person and $300,000 per accident.