# What is coverage limit?

> A coverage limit is the maximum amount available under a particular coverage.

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.

Coverage, definitions, limits, and legal requirements vary by policy and state. Your declarations page and policy forms control your coverage.

## Related terms

- [Policy limit](https://locations.goautoinsurance.com/car-insurance-glossary/policy-limit.md)
- [Rental reimbursement coverage](https://locations.goautoinsurance.com/car-insurance-glossary/rental-reimbursement-coverage.md)
- [Actual cash value](https://locations.goautoinsurance.com/car-insurance-glossary/actual-cash-value.md)

- [Car insurance guide](https://locations.goautoinsurance.com/car-insurance-guide.md)
- [Complete glossary](https://locations.goautoinsurance.com/car-insurance-glossary.md)