What is the minimum liability required under State Mandatory Insurance Law?

The minimum liability required under State Mandatory Insurance Law is often represented as a series of three numbers, which indicate the coverage limits for bodily injury and property damage. For many states, the set of numbers that corresponds to the minimum requirements reflects the need to sufficiently cover common accident scenarios. The choice of 25/50/20 means that an insured individual has coverage limits of $25,000 for injury to one person, $50,000 for total injuries per accident (for multiple people), and $20,000 for property damage.

This coverage is designed to align with the financial responsibility laws in many states, ensuring that drivers have a basic level of protection that can help cover the expenses arising from accidents they cause. The first number protects against costs associated with injuries to a single party, the second takes care of costs when multiple parties are involved, and the third covers damage to property.

The other options provide different minimum limits that may not reflect the standard requirements in many jurisdictions, which is why they may not be the correct answer in this context. Therefore, the selection of 25/50/20 appropriately meets the criteria set by many state laws for the minimum liability insurance coverage.