What does 100/300/100 mean?

The numbers 100/300/100 refer to the limits of liability coverage in an auto insurance policy. These figures represent the maximum amount the insurance company will pay for bodily injury and property damage in the event of an accident for which you are at fault. The numbers are usually in thousands of dollars and are broken down as follows:

1. First Number (100) – Bodily Injury Liability per Person

• Meaning: This is the maximum amount your insurance will pay for bodily injury to a single person injured in an accident.
• Example: In this case, it means your insurer will cover up to $100,000 for injuries to one person.
  
  

2. Second Number (300) – Bodily Injury Liability per Accident

• Meaning: This is the total maximum amount your insurance will pay for bodily injury for all people injured in a single accident.
• Example: Here, it means your insurer will cover up to $300,000 in total for all injuries in one accident, regardless of the number of people injured.
  
  

3. Third Number (100) – Property Damage Liability

• Meaning: This is the maximum amount your insurance will pay for damage to other people’s property (e.g., vehicles, buildings, fences) in an accident.
• Example: In this case, it means your insurer will cover up to $100,000 for property damage caused by the accident.
  
  

Practical Example

Suppose you are at fault in an accident where three people are injured, and the damages are as follows:

• Person 1: $80,000 in medical expenses
• Person 2: $150,000 in medical expenses
• Person 3: $60,000 in medical expenses
• Property damage: $90,000
  
  

Coverage Breakdown:

• Person 1: Covered fully by the first number (up to $100,000).
• Person 2: Covered up to $100,000 by the first number; however, they are eligible for an additional $50,000 under the second number.
• Person 3: Covered fully by the first number (up to $100,000).

However, the total bodily injury coverage cannot exceed $300,000 per accident:

• Total for Person 1: $80,000

• Total for Person 2: $150,000

• Total for Person 3: $60,000

• Total: $290,000 (within the $300,000 per accident limit)

• Property Damage: The $90,000 in property damage is fully covered since it is below the $100,000 limit.
  
  

Importance of Understanding 100/300/100 Coverage

• Adequate Protection: Ensures you have sufficient coverage in the event of a serious accident, protecting you from potential financial liability beyond your policy limits.
• Legal Compliance: Helps you meet state minimum insurance requirements, though these limits are often higher than the minimums.
• Financial Security: Reduces the risk of out-of-pocket expenses for accidents, which can be substantial without adequate coverage.
  
  

Understanding these numbers helps you make informed decisions about your auto insurance policy and ensures you are adequately protected against potential liabilities.