Policy limits are the maximum amounts an insurance policy will pay, usually written as two numbers: per person and per accident. California's long-standing minimum for bodily injury was $15,000/$30,000, raised to $30,000/$60,000 for policies issued from 2025 — still modest against a real hospital stay.
Limits matter because they, not the size of your losses, are usually the practical ceiling: an at-fault driver with minimum limits and no meaningful assets effectively caps the claim at those limits.
The full picture often includes more than one policy: the driver's, a vehicle owner's, an employer's (if the driver was working), and your own UM/UIM. Mapping every available policy is one of the first concrete things a lawyer does with a serious-injury case.