Coverage limits refer to the maximum amount an insurance policy will pay for a particular type of loss or claim. It sets a cap on the amount of money the insurance company will provide in case something happens. Full definition
The cost goes up with higher coverage limits of course. (statefarm.com)
It's a way to verify insurance with the minimum liability coverage limits for drivers who have been ordered to obtain this by a judge. (turnervermost.com)
For instance, someone with a highly customized motorcycle might have a need for high coverage limits for custom parts. (valuepenguin.com)