Liability limits are the maximum amount that a liability insurance company agrees to pay as a result of a single accident or injury to a single person. $50k/$100k/$50k means you have $50,000 worth of bodily injury per person for a maximum of $100,000 per accident and $50,000 of property damage. The state minimum is not recommended because the price of many vehicles would not be covered with $25,000 of coverage, and the liable party would be responsible for the rest of the damages.