What Is 100/300 Bodily Injury Coverage?

Auto insurance liability coverage protects a policyholder financially if they are responsible for an accident. This coverage addresses damages or injuries caused to other individuals and their property. Bodily injury liability specifically pertains to injuries sustained by others in an accident where the policyholder is at fault. It forms a primary layer of financial protection against potential costs.

Understanding the Coverage Limits

When reviewing an auto insurance policy, bodily injury liability limits are presented as two numbers, such as 100/300. The first number, 100, signifies the maximum $100,000 the insurance carrier will pay for bodily injuries to any single person in an accident caused by the policyholder. For example, if one person incurs $150,000 in medical expenses, the policy would pay up to $100,000, leaving the policyholder responsible for the remaining $50,000.

The second number, 300, indicates the aggregate maximum $300,000 the insurer will pay for all bodily injuries combined in a single accident. This limit applies even if multiple people are hurt and their individual medical costs exceed the per-person limit. If, for instance, four people sustain injuries totaling $400,000, the policy would pay up to $300,000, and the policyholder would be personally responsible for the additional $100,000. These amounts represent the upper thresholds of financial responsibility for the insurer, highlighting the importance of selecting adequate limits.

What Bodily Injury Coverage Covers

Bodily injury liability coverage addresses expenses incurred by other parties injured in an accident where the policyholder is at fault. This includes medical expenses, which encompass emergency services, hospital stays, doctor visits, prescription medications, and rehabilitation costs like physical therapy.

Beyond medical care, this coverage accounts for lost wages if the injured party is unable to work due to their injuries. It can provide compensation for income that an individual misses because of the accident, supporting their financial stability during recovery. Bodily injury liability also covers non-economic damages such as pain and suffering, which compensates for physical discomfort and emotional distress. In the event of a fatality, it can contribute to funeral expenses.

If the policyholder is sued as a result of the accident, this coverage can help pay for legal defense costs, including attorney fees and court expenses. Bodily injury liability specifically covers injuries to other people, not the policyholder’s own injuries or damage to their vehicle.

The Purpose of Bodily Injury Coverage

The primary purpose of bodily injury coverage is to provide financial protection for the policyholder against claims and lawsuits from accidents where they are at fault for injuring others. Without sufficient coverage, a policyholder could be personally responsible for substantial medical bills, lost income, and legal fees, potentially exposing their personal assets.

This coverage also serves a societal function by ensuring that individuals injured in an accident receive compensation for their damages. Most states require drivers to carry a minimum level of bodily injury liability coverage, underscoring its role in meeting mandatory insurance laws. Adhering to these requirements allows individuals to legally operate a vehicle and provides a baseline of financial responsibility.