What do the numbers in a 25/50/25 insurance coverage policy represent?

In a 25/50/25 insurance coverage policy, the numbers represent specific limits for liability coverage in the event of an accident. The first number indicates the maximum amount payable for bodily injury per person, which in this case is $25,000. The second number represents the total bodily injury coverage limit for all persons injured in a single accident, which here is $50,000. The third number signifies the maximum amount payable for property damage in the same incident, also set at $25,000.

Understanding these numbers is crucial for policyholders, as they determine the extent of financial protection available for incidents that may involve injuries to others or damage to third-party property. Having clear limits helps individuals assess their risk exposure and choose coverage that aligns with their needs and budget.