A limit is the maximum amount that will be paid out by an insurance policy for damages under any particular coverage. Limits are commonly applicable to Auto Liability, Uninsured and Underinsured coverages. Limits under the Comprehensive and Collision coverages are typically consider the actual cash value of your car, however there are restrictions to that amount.

For example, a $15,000 auto liability property damage limit means an insurer will pay up to $15,000 for damage to a car(s) or other property that their policy holder is liable for.  

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