Auto Insurance: Overpaying Or Peace Of Mind?

In the context of auto insurance, 100/300 refers to the minimum and maximum limits an insurance company will pay to cover bodily injury liability. This means that the insurance company will cover up to $100,000 per person and $300,000 per accident for bodily injuries. While this coverage is not mandated by law in any state, it is a standard recommendation by national auto insurance carriers and can provide valuable protection in the event of a serious accident.

What does 100/300 auto insurance cover?

A 100/300 auto insurance policy covers bodily injury liability costs, with a limit of $100,000 per injured person and $300,000 per accident. This means that if you hit someone else's car and injure four people, your insurance company will pay up to $300,000 towards their total medical bills, with a limit of $100,000 per person. If one of those passengers has $150,000 in medical expenses associated with the accident, your insurance company would pay $100,000 and you would be responsible for the remaining $50,000 out-of-pocket.

The policy also typically includes a third number, usually 100, which refers to the amount of property damage liability coverage included with the insurance coverage. This type of policy is called split limit coverage, which splits auto insurance coverage into three parts: bodily injury coverage per person, bodily injury covered per accident (total), and property damage covered. So, a 100/300/100 auto insurance policy covers up to $100,000 per person and $300,000 per accident for bodily injury liability, and up to $100,000 per accident for property damage liability.

While 100/300 auto insurance is not required by state law, it is a standard recommendation by national auto insurance carriers. It is considered to provide more protection than the average insurance coverage, as most states only require drivers to carry 25/50 insurance coverage. Additionally, certain industries, such as food delivery drivers, couriers, and rideshare companies, require 100/300/100 policies.

Is 100/300 auto insurance required?

No US state law mandates that drivers obtain 100/300 insurance coverage. However, 100/300 policies are standard bodily injury liability limits set by national auto insurance carriers, and some states mandate that drivers purchase 100/300 insurance coverage in special circumstances. For example, Florida requires drivers with drunk driving convictions to purchase this level of coverage.

While not a legal requirement, 100/300 insurance coverage is considered enough for the majority of drivers. It is a standard recommendation by national auto insurance carriers. It is also a requirement for certain industries, including food delivery drivers, couriers, and rideshare companies like Lyft and Uber.

The 100/300 figures refer to the minimum and maximum limits an insurance company will pay to cover bodily injury liability. In the event that only one person is injured in an accident, the insurance company will cover $100,000 of bodily injury liability costs. If multiple people are injured, the company will cover up to $300,000 in total.

The higher limits offered by 100/300 insurance policies provide drivers with more protection than the average insurance coverage. While most states only require 25/50 coverage, this is often barely enough to cover the costs of repair and medical treatment after accidents.

Drivers should aim to have as much liability coverage as they can afford. While 100/300 insurance is not a minimum requirement in any state, it offers solid protection. In the event of an at-fault accident, you will still be held financially responsible, so it is important to have sufficient coverage.

Why carry 100/300 auto insurance?

A 100/300 auto insurance policy is a type of liability coverage that offers solid protection to drivers. This policy covers bodily injury liability costs, providing up to $100,000 per person and $300,000 per accident. In the event of an accident, this coverage ensures that the insured driver is protected financially and can cover the medical expenses of injured victims. While it is not mandated by law in any US state, it is a standard recommendation by national auto insurance carriers.

The main benefit of carrying 100/300 auto insurance is the increased protection it provides. Most states only require a minimum of 25/50 coverage, which may not be sufficient to cover the costs of repairs and medical treatment after an accident. With the rising costs of medical care and vehicle repairs, having higher coverage limits can provide peace of mind and financial security.

Additionally, 100/300 auto insurance can protect you from legal consequences. If you are at fault in an accident and the damages exceed your insurance coverage, you may be held personally responsible for the remaining costs. This could result in significant financial losses and even lead to financial ruin. By carrying 100/300 auto insurance, you reduce the risk of being underinsured and facing such dire consequences.

Another reason to consider 100/300 auto insurance is that it is often quite affordable to upgrade to this level of coverage. In many cases, you can double your liability insurance for less than $100 per year, which is a small price to pay for the extra protection it provides. This makes it a cost-effective way to safeguard yourself and your assets in the event of an accident.

While 100/300 auto insurance may not be required by law, it is worth considering the potential benefits. By carrying this level of coverage, you can ensure that you have sufficient protection, comply with leasing company requirements, and avoid financial strain in the event of an accident.

Is 100/300 auto insurance enough?

A 100/300 auto insurance policy covers up to $100,000 of bodily injury per person injured in an accident and up to $300,000 total for bodily injuries per accident. This is often displayed as 100/300/100, with the third number referring to the amount of property damage liability coverage, in this case, $100,000.

While 100/300 auto insurance is not a minimum requirement in any state, it is a standard recommendation by national auto insurance carriers. It is also required by certain industries, including food delivery drivers, couriers, and rideshare companies.

100/300 auto insurance is enough for the majority of drivers. However, if you have a high net worth, you may want to increase your bodily injury liability coverage to 250/500/100 to ensure you are fully protected in the event of a serious accident.

The cost of damages from an accident could exceed the liability limits of a 100/300 policy. In this case, you would be responsible for paying the remaining amount out of pocket. Healthcare costs have risen dramatically in recent years, and a single surgery to treat a serious spinal injury can cost up to $100,000. As a result, a serious accident could easily result in over $100,000 of medical expenses and lost wages for a single person.

If you are unsure whether 100/300 auto insurance is enough for your needs, it is a good idea to speak to an insurance expert to get advice tailored to your specific situation.

How does 100/300 auto insurance differ from 50/100?

100/300 auto insurance and 50/100 auto insurance are types of liability coverage, which pays for any damage you cause to someone else in an at-fault accident. The numbers refer to the amount of bodily injury liability coverage your policy provides per person and per accident, and the amount of property damage liability coverage your policy provides per accident.

A 50/100 auto insurance policy means that the insurer will cover up to $50,000 of bodily injury per single person injured in an accident and $100,000 total for bodily injuries per accident. A 100/300 auto insurance policy will cover up to $100,000 of bodily injury per person and $300,000 total for bodily injuries per accident.

Therefore, the main difference between 100/300 and 50/100 auto insurance is the amount of coverage provided. A 100/300 policy offers more coverage, both per person and per accident, than a 50/100 policy. This means that with a 100/300 policy, you are less likely to have to pay out of pocket for expenses related to an accident, such as medical bills or property damage.

While 100/300 auto insurance is not a minimum requirement in any state, it is a standard recommendation by national auto insurance carriers. Most states require far less insurance coverage than what is needed to protect yourself and your assets adequately. Experts generally recommend setting your car insurance liability limits at 100/300/100, which includes property damage liability coverage.

Frequently asked questions