In a 100/300 auto insurance policy, 100 and 300 refer to the bodily injury liability limits (in thousands) of the insurance coverage policy.
the 100 allows the policy to cover up to $100,000 of bodily injury for each person injured in an accident and the 300 means the policy will cover up to a total of $300,000 for bodily injury per accident.
You’ll usually see such policies include a third number (for example, 100/300/100).
what the last 100 represents is the amount of property damage liability coverage, in thousands, included with the insurance coverage. this is called split limit coverage.
what does 100/300/100 insurance coverage mean?
In a 100/300/100 policy, up to $100,000 in bodily injury would be covered for each person injured in an accident, as well as up to $300,000 total in bodily injury per accident and up to $100,000 in property damage from other people would be covered by the policy.
what is the difference between 50/100 and 100/300 auto insurance coverage?
In a 50/100 policy, the policy would only cover up to $50,000 of bodily injury suffered by a single person injured in an accident (and a total of $100,000 of bodily injury per accident).
As mentioned above, a 100/300 policy would cover up to $100,000 of bodily injury suffered by a single person injured in an accident and up to $300,000 in total bodily injury per accident, so the 100/300 policy offers more coverage (both per person and per accident).
what is liability coverage?
Liability coverage is compensation for others who have been injured in an accident for which someone insured under your policy was responsible.
Liability coverage will not pay for injuries to any person covered by your policy. 100/300/100 auto insurance coverage is a liability policy.
Is 100/300 insurance required?
100/300 insurance coverage policies are often purchased voluntarily, although they are required by some finance companies, including car leasing companies.
This makes sense because leasing companies want to make sure you are financially protected if you are found liable for causing damage or injury while driving the leased vehicle.
State law does not require limits as high as 100/300, unless there are special circumstances.
Examples of this include Florida, where drivers who have been convicted of driving under the influence of drugs or alcohol must have a policy that maintains 100/30/50 liability limits.
Although 100/300 policies are not generally mandated by state authorities, 100/300 policies are a standard limit of liability coverage suggested by national auto insurance companies.
Certain industries will require 100/300/100 policies, including (but not limited to) food delivery drivers, couriers, and ride share companies like Lyft and Uber.
why limit 100/300 voluntarily?
Even when higher limits are not required, they are worth thinking about.
The minimum state coverage requirements in most states are not much compared to what an accident could cost.
While many states require a minimum of 25/50 coverage, 100/300/50 policies are often affordable and give you more financial protection.
Is 100/300 insurance enough?
If 100/300 coverage is not required but may be a good idea, a follow-up question might be: “Is 100/300 coverage enough?”
The truth is, the lower the numbers, the lower the premiums. And the lower premiums are hard to resist. however, in the long run, it’s important to make sure you have enough auto insurance coverage.
Any damage resulting from an accident that was your fault, even if those damages exceed your insurance coverage, are your financial responsibility. Failure to pay for these damages could result in loss of savings and/or other assets, including financial ruin.
If you are unable to pay any financial need that remains after insurance coverage limits are exceeded, the courts will take care of your assets if you are the party at fault. depending on what your assets are, you may have a lot to lose.
The more assets you have, the more auto insurance coverage you should have.
so how much car insurance do i really need?
The easiest way to get started with this question is to find out what your state requires. these limits will be your starting point: having more than the minimum coverage is to your advantage, as accident damage will often cost more than the minimum coverage offers.
You should also consider who is driving your car. The experience, as well as the driving records of your car drivers, should influence your coverage options.
Teen drivers can also seriously affect your auto insurance premiums.
Depending on how often you drive and how far you drive, your risk of an accident may be lower. It’s important to keep this in mind when selecting auto insurance coverage.
If you only use your vehicle for infrequent errands, your risk is lower than someone who uses their vehicle for a daily commute or has a job that involves frequent travel or driving. auto insurance coverage needs would be different for each of those situations.
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- bodily injury coverage per person
- bodily injuries covered per accident (total)
- covered property damage
higher known risk = higher coverage needed.
In truth, 100/300/100 may not be a state requirement, but it is definitely a coverage amount to consider and one that many experts recommend. It may sound like more coverage than you need, but because the cost of accident damage can be astronomical, know that it’s not much coverage. in most cases, however, it is sufficient coverage.
selecting 100/300/100 coverage increases the chances that you will have enough coverage for most incidents. remember to keep your assets in mind, as that could be a reason to consider adding more coverage.
And no matter what situation you find yourself in, remember that you can request a quote to find out how much it would cost to increase your liability limits. often the difference in premiums is not as much as you might expect.
100/300/100 (or 50/100/50, etc., and similarly written policies) coverage is called split limit coverage.
Split limit coverage divides auto insurance coverage into three parts:
Liability coverage is coverage for people injured (or property damage) in an accident when you or a driver under your policy is at fault. liability coverage does not cover your own personal injury/damage.
100/300 insurance is not a minimum requirement in any state (although most states have some standard recommended minimum requirement). however, 100/300 insurance is a standard recommendation from national auto insurance companies.
100/300 insurance coverage is enough for most drivers.
Several risks, as well as your assets and net worth, must be evaluated when selecting auto insurance coverage.
It is important to have enough coverage for your particular situation so that, in the event of an accident, you are not personally responsible for a large financial need that you cannot afford. this could be detrimental to your personal financial stability.
Remember, while not required, drivers may want to consider more insurance protection. You can usually find an affordable policy with coverage at the 100/300 level. having that extra protection will be worth it if you ever need it.
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Be sure to read our recent article to help you save money when buying car insurance on 8 Must-Know Tips to Save Money When Buying Car Insurance
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