A 100/300 policy is an insurance policy that includes bodily injury liability coverage limits of $100,000 per person and $300,000 per accident. A 100/300 policy is generally recommended for drivers who can afford it, since it offers more protection against serious accidents than the insurance required by most states.
Although bodily injury liability insurance of 100/300 is recommended for most drivers, you should consider purchasing even higher limits or a personal umbrella policy if you have a particularly high net worth. Additionally, bodily injury liability insurance will only pay for other people’s injuries if you cause an accident, not your own. In order to cover your own medical expenses after a wreck, you’ll need to purchase PIP or medical payments coverage.
The numbers in liability insurance mean that an insurer will only pay for bodily injury or property damage liability claims up to a certain dollar amount. These policy limits are typically expressed as three numbers that each represent an amount in thousands of dollars, like 25/50/25. With a 25/50/25 policy, the insurance company will pay up to $25,000 per person for bodily injury claims and up to $50,000 in bodily injury claims per accident. Additionally, it will cover up to $25,000 in property damage for each accident.… read full answer
Every liability car insurance policy includes limits that are expressed with these numbers, and the order and notation are always the same. Once you know what the numbers in liability insurance mean, you can better understand how your own policy works.
What the Numbers in Liability Insurance Mean
1st Number: The maximum amount of bodily injury liability coverage per person.
2nd Number: The maximum amount of bodily injury liability coverage per accident.
3rd Number: The maximum amount of property damage liability coverage per accident.
Examples of Liability Insurance Limits
$25,000 in bodily injury liability insurance per person
$50,000 in bodily injury liability insurance per accident
$15,000 in property damage liability insurance per accident
$30,000 in bodily injury liability insurance per person
$60,000 in bodily injury liability insurance per accident
$10,000 in property damage liability insurance per accident
$50,000 in bodily injury liability insurance per person
$100,000 in bodily injury liability insurance per accident
$25,000 in property damage liability insurance per accident
It’s important to remember that these coverage limits only apply to other people’s expenses after an accident that you cause. If the cost of a bodily injury or property damage liability claim exceeds your policy limits, you can be left personally responsible for covering the remaining amount. As a result, you should purchase as much liability insurance as you can afford in order to protect your finances in case you cause a severe accident.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.