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.
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