Car insurance liability limits tell you how much your policy will pay, maximum, on either each claim or the entire policy. You will likely have a per occurrence limit and a per policy limit. You have the choice to choose these limits across many different lines of coverage.
Your property limits will cover you if you need collision car insurance. You will use this line of coverage to repair your vehicle and the vehicle of another person if you are at fault in the accident. The other driver's policy will pay if he or she is at fault. You may need car insurance for an uninsured motorist if the other person does not have insurance.
Liability claims are a result of law suits against you due to negligence. If you harm another person with your vehicle, for example, you will need personal injury car insurance to cover the cost of attorneys fees or any payments you owe to that person. Make sure your liability limits are high enough to protect your assets. Your car is typically worth much less than it will cost to defend a liability suit, meaning your property limits should be lower than your liability limits.