Decoding Auto Insurance Coverage: What Do 100/300/100 Numbers Mean?

When it comes to auto insurance, you might have heard people throw around numbers like 100/300/100, but what do these figures signify? Understanding these numbers is crucial because they directly impact your financial security in the event of an accident. Let’s break it down. 

What Is 100/300/100? 

These three numbers represent different aspects of your auto insurance coverage. Generally, they refer to: 

1. $100,000 Bodily Injury Liability per Person: This first number indicates the maximum amount your insurance will pay for injuries sustained by a single person in another vehicle or a pedestrian if you’re at fault in an accident. In this example, it’s $100,000. 

1. $300,000 Bodily Injury Liability per Accident: The second number denotes the total amount your insurance will cover for all injuries in a single accident if you’re found responsible. So, if multiple people are injured, your policy will cover up to $300,000 collectively. 

1. $100,000 Property Damage Liability: This final number represents the maximum amount your insurance will pay for property damage caused by your vehicle in an accident, such as repairing or replacing vehicles, buildings, or other structures. 

Why Do Coverage Limits Matter? 

Many states mandate a minimum coverage level, often expressed as 25/50/25. While this might have sufficed in the past, the automotive landscape has evolved. Today, the average car on the road is valued at over $30,000. If you’re only carrying minimum coverage, you could find yourself underinsured in the event of a serious accident. 

Consider this: if you cause an accident resulting in severe injuries to multiple people or substantial property damage, the costs could easily exceed your coverage limits. In such a scenario, you could be held personally liable for the remaining expenses, potentially leading to financial ruin. 

That’s why it’s advisable to reassess your insurance needs regularly and consider purchasing coverage beyond the state minimums. While opting for higher coverage limits might mean slightly higher premiums, the peace of mind and financial protection they offer in case of an accident far outweigh the additional costs. 

Get The Right Auto Insurance Coverage Today 

The numbers in your auto insurance coverage represent the maximum amounts your policy will pay for bodily injury and property damage. Carrying only the minimum coverage mandated by your state might not provide adequate protection, especially considering the rising costs associated with accidents. Take the time to review your policy with Ace Insurance Consultants and ensure you have sufficient coverage to safeguard your finances and assets. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.