Car insurance glossary
What is coverage limit?
A coverage limit is the maximum amount available under a particular coverage.
Also called: limit of insurance
Glossary date: February 2, 2026
How it works
It may be a dollar amount, the actual cash value of a vehicle, or another limit described in the contract. A deductible can still apply before the insurer pays.
Example
Rental reimbursement has a $40 daily limit for up to 30 days. A $55 rental leaves $15 per day for you to pay.
Why it matters
Optional coverages can have smaller or more specific limits than the main liability section.
What to check on your policy
Read the declarations page and endorsements for dollar, time, distance, and per-use limits.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.