What Does 15/30 Mean for Insurance?

The numbers “15/30” often appear in auto insurance, representing standard liability coverage limits. They outline the minimum financial protection an insurance policy provides in an at-fault accident. Understanding these numbers is important for policyholders, as they directly influence financial responsibility after a collision. These numbers are commonly associated with basic liability requirements.

Understanding the Per-Person Bodily Injury Limit

The first number, “15,” refers to the per-person bodily injury liability limit. This is the maximum your insurance will pay for medical expenses, lost wages, and pain and suffering for any single individual injured in an accident you cause. If you are at fault in a collision and one person sustains injuries, your policy covers up to $15,000 for their related costs. This limit applies individually to each injured person.

This coverage protects you from financial responsibility for physical harm to another person. If medical bills for one injured party reach $10,000, your insurance covers that amount, leaving $5,000 of the per-person limit available. However, if a single individual’s injuries result in $20,000 in damages, your policy would pay only $15,000, leaving the remaining $5,000 as your personal liability.

Understanding the Per-Accident Bodily Injury Limit

The second number, “30,” is the per-accident bodily injury liability limit. This is the total maximum your insurance will pay for all bodily injuries sustained by all individuals in a single accident. This limit acts as an aggregate cap: regardless of how many people are injured, the total payout for bodily injury claims from that incident will not exceed $30,000. It works in conjunction with the per-person limit.

If three people are injured in an accident you cause, and each incurs $10,000 in medical expenses, the per-person limit of $15,000 is met for each, totaling $30,000. Your insurance covers this full amount. However, if those same three individuals each sustained $12,000 in damages, totaling $36,000, your policy would still only pay the $30,000 per-accident limit, leaving $6,000 as your personal financial obligation.

Understanding the Property Damage Limit

While “15/30” addresses bodily injury, liability coverage typically includes a third number, often “15/30/10,” representing the property damage limit. This third figure is the maximum your insurance will pay for damage you cause to another person’s property in an at-fault accident. This can include damage to other vehicles, fences, buildings, or other structures. This liability coverage is distinct from bodily injury and covers only physical property.

If you cause an accident resulting in $8,000 worth of damage to another vehicle, your policy covers this amount up to the $10,000 property damage limit. However, if the damage to the other vehicle amounts to $12,000, your insurance would pay $10,000, and you would be personally responsible for the remaining $2,000. This limit covers repair or replacement costs of damaged assets belonging to others.

Consequences of Insufficient Coverage

When at-fault accident costs for bodily injury or property damage exceed your liability insurance limits, financial responsibility falls directly on you. Any damages or judgments surpassing your policy’s “15/30/X” limits must be paid from your own assets. This personal liability can lead to significant financial consequences, potentially including lawsuits filed against you by injured parties.

A court judgment for damages exceeding your coverage could result in wage garnishment, where earnings are legally withheld to satisfy the debt. Personal assets like savings accounts, real estate, or other valuable possessions could also be seized to cover the outstanding balance. Opting for higher liability limits provides a greater buffer against these financial risks, protecting your future earnings and assets from potential claims.