What Is 100/300/50 Car Insurance Coverage?
Unravel the meaning behind common auto insurance liability limits. Understand how these figures define your financial responsibility in an accident.
“100/300/50 insurance” is a frequently encountered shorthand referring to specific limits within an auto liability insurance policy. These numbers signify the maximum amounts your insurance company will pay if you are found responsible for an accident that causes injury to other individuals or damage to their property. Liability coverage is a fundamental component of nearly every auto insurance policy, designed to provide financial protection to the policyholder.
Bodily Injury Liability Coverage Limits
The first two numbers in the 100/300/50 format pertain to bodily injury liability coverage, which addresses costs for injuries sustained by other people in an accident you cause. The “100” represents $100,000, the maximum amount your insurance will pay for bodily injuries to any single person involved in an accident. This per-person limit covers expenses such as medical bills, lost wages due to injury, and pain and suffering for the injured party.
The “300” signifies $300,000, the maximum total amount your insurance company will pay for all bodily injuries combined in a single accident for which you are at fault. This limit applies regardless of the number of people injured, capping the total payout for all per-person claims arising from that specific incident. For instance, if four people are injured in an accident you caused, and each incurs $75,000 in medical expenses, your insurance would cover the full $300,000, as no single person exceeded the $100,000 individual limit and the total remained within the $300,000 per-accident limit. If one person’s injuries cost $150,000, the policy would only pay $100,000 for that individual, even if the per-accident limit had remaining capacity.
Property Damage Liability Coverage Limits
The third number, “50,” in the 100/300/50 sequence indicates the property damage liability coverage limit. This represents $50,000, the maximum amount your insurance company will pay for damage to other people’s property resulting from an accident where you are at fault. This coverage addresses repairs or replacement for items like other vehicles, buildings, fences, utility poles, or other physical property damaged in the collision.
This $50,000 limit applies per accident, covering the total cost of all damaged property up to that amount. It is distinct from bodily injury coverage and does not cover damage to your own vehicle, which typically requires separate collision coverage. If the cost to repair or replace the damaged property exceeds this $50,000 limit, the policyholder becomes personally responsible for the remaining amount.
Understanding Your Total Liability Protection
The “100/300/50” sequence outlines your complete liability coverage limits for a single accident, defining the boundaries of your financial protection if you are deemed at fault. These limits work in concert to cover different aspects of damages you might cause to others. For example, if you are at fault in an accident, your policy would cover bodily injuries up to the per-person and per-accident limits, and property damage up to its limit.
However, any damages exceeding these specific policy limits become the personal financial responsibility of the at-fault policyholder. For instance, if total bodily injury claims amounted to $350,000, your policy would pay up to $300,000, leaving you responsible for the remaining $50,000. Similarly, if property damage reached $65,000, you would be liable for the $15,000 beyond your $50,000 coverage. This type of coverage specifically addresses liability for damages you cause to others, differentiating it from other auto insurance coverages like collision or comprehensive, which cover your own vehicle or injuries.