100/300 Insurance Cost: Everything You Need to Know (2024)

The term "100/300 insurance" refers to the minimum and maximum limits an insurance company will pay to cover bodily injury liability. This article will explore 100/300 insurance cost in detail.

What Is 100/300 Insurance Coverage?

According to MoneyGeek, a 100/300 auto insurance policy will cover $100,000 of bodily injury treatment costs for each injured person in an accident and $300,000 of bodily injury liability costs per accident.

What Does 100/300/100 Mean?

The 100/300/100 figures indicate different coverage levels of bodily injury liability costs in your insurance policy:

  • $100,000 for bodily injury liability per injured person in an accident
  • $300,000 limit for bodily injury liability per accident
  • $100,000 for property damage per accident

In the event that only one person is injured in an accident, your insurance company will cover $100,000 of bodily injury liability costs. The "300" total bodily injury liability cost does not apply in this situation.

Is 100/300 Insurance Required?

No U.S. 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 circ*mstances. According to Paradiso Insurance, Florida requires drivers who have committed crimes like drunk driving to buy 100/300 insurance coverage.

Why Carry 100/300 Limits?

Having 100/300 insurance coverage provides drivers with more protection than the average insurance coverage. Most U.S. states only require drivers to carry 25/50 insurance coverage. However, the 25/50 coverage is barely enough to cover the costs of repair and medical treatment needed after accidents.

How Much Car Insurance Do I Need?

Every state requires its drivers to possess some level of auto insurance before they use vehicles. To drive legally, you must have all the insurance requirements that your state demands.

You also need sufficient insurance to cover your auto repairs and medical treatments after an accident. Define the type of coverage that is essential to you and add it to your insurance policy. In addition, factors such as your state of residence and your earning capacity can determine the amount of insurance you need.

Who Should Buy Minimum Levels of Liability Car Insurance?

People who have low earnings can opt for minimum levels of liability car insurance. While this type of insurance rarely provides sufficient coverage, it is better than not having vehicle insurance at all.

Do I Need More Coverage?

It's best to purchase more coverage as your income increases. If you're at fault in an accident, the law will require you to foot the bill for bodily injury and property damage incurred during the event.

Your insurer will only cover damages up to the limits in your policy, leaving you to pay for other bills yourself. As you upgrade your insurance policy, your insurer increases your coverage limit. So, if you have a very high premium, you will only need to pay your deductible when an accident occurs.

In contrast, drivers with minimal coverage may end up losing their property to cover auto repair and medical expenses after a car crash.

What Are the Typical Car Insurance Coverage Types?

According to MoneyGeek, the common types of car insurance coverage are:

  • Comprehensive coverage: This coverage protects you against damage that happens outside of an accident. Examples of damages that fall under comprehensive coverage are fire damage and theft.
  • Collision coverage: Collision coverage covers repairs for damage related to an accident.

What Is Liability Coverage?

Liability coverage covers payments for the medical bills of injured victims when someone under your insurance policy causes an accident. According to The Zebra, the coverage does not include medical bills of drivers under your insurance policy. An example of liability coverage is 100/300 liability insurance coverage.

What Are the Two Categories of Liability Insurance?

The two categories of liability insurance are property damage liability and bodily injury liability.

Is Liability Car Insurance Required?

U.S. state law often require drivers to carry liability car insurance coverage. The minimum insurance coverage differs from one state to another. It's best to purchase insurance coverage that is higher than the minimum coverage level to provide adequate protection against damages.

What Is the Purpose of Liability Car Insurance?

U.S. state legislators set liability car insurance laws to protect residents from suffering financial losses due to the careless driving of other road users. Always keep track of auto insurance requirements in your state to avoid violating state laws.

What Is the Best Liability Coverage for Most Drivers?

The best liability coverage for drivers residing in the United States is the 100/300/100 liability coverage. The 100 refers to the $100,000 payable limit per injured victim in an accident, and the 300 stands for $300,000 for total bodily injury coverage per accident. The second 100 represents $100,000 property damage coverage per accident.

The 100/300/100 liability coverage is the best because it offers total protection against significant losses when a road accident is your fault. When you cause an accident, U.S. law mandates you to cover the victims' medical expenses and vehicle repair bills. The maximum limits in the 100/300 coverage will help you cover these expenses.

Who Should Buy Uninsured Motorist Car Insurance?

Anyone who can afford the insurance premium for uninsured motorist car coverage should purchase it. In fact, some states require it. That said, you can skip the uninsured motorist insurance if you have a certified health insurer and collision coverage. Uninsured motorist coverage covers your medical treatment expenses and auto repair bills when an uninsured driver hits your car.

Do You Need Comprehensive and Collision Coverage?

MoneyGeek says that you need comprehensive and collision coverage if your car is less than 10 years old or you won't be able to cover the cost of repairs or replacing the car out of pocket. It is also advisable to buy this coverage if your area experiences natural phenomena such as flooding, tornadoes, hail, and animal strikes, which can cause major damage to your vehicle.

Check this out if you need additional information, resources, or guidance on car insurance.

Sources:

What Is 100/300 Insurance Coverage? | paradisoinsurance.com

How Much Car Insurance Do You Need and How Much Is Required? | moneygeek.com

How Much Car Insurance Do You Need? | thezebra.com

How Much Car Insurance Do I Need? | caranddriver.com

What Does Liability Insurance Cover? | caranddriver.com

Car Insurance | caranddriver.com

100/300 Insurance Cost: Everything You Need to Know (1)

Hearst Autos Research

Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.

100/300 Insurance Cost: Everything You Need to Know (2024)

FAQs

Is 100-300/100 insurance worth it? ›

100/300/100 coverage is a high level of protection, and it's typically more than what's required by state law. In most states, the minimum amount of auto liability insurance you must have is 25/50/25.

How do you interpret the numbers 100 300 on your insurance policy? ›

The 100 refers to the $100,000 payable limit per injured victim in an accident, and the 300 stands for $300,000 for total bodily injury coverage per accident. The second 100 represents $100,000 property damage coverage per accident.

What is the 100 300 50 insurance policy indicates that the property damage limit is? ›

Having a 100/300/50 auto insurance policy means you have $100,000 in coverage for bodily injury liability per person, $300,000 for bodily injury liability per accident, and $50,000 for property damage liability.

What is the 50/100/50 rule for liability insurance? ›

50 Bodily Injury Coverage-$50,000 per person for injuries. 100 Overall Maximum Coverage-$100,000 will be paid out for injuries total per accident. 50 Property Damage Coverage-$50,000 per accident will be paid for the damage you do to the property of others.

How much is a 100000 insurance policy worth? ›

How much can you sell a $100,000 life insurance policy for? On average, you can expect to receive 20% of the policy's face value when you sell it, according to the Life Insurance Settlement Association (LISA). That means a $100,000 life insurance policy might sell for $20,000.

Is umbrella insurance worth it? ›

An umbrella policy can forestall the prospect of financial ruin due to an unintentional misstep or an unforeseeable accident. You may also wish to consider increasing the liability limits on your auto or homeowners insurance policies.

What does Progressive auto 100 300 mean? ›

Each number represents the maximum amount your insurance company will pay for a specific part of your liability coverage, so a 100/300/100 policy means bodily injury liability limits of $100,000 per person and $300,000 per accident, and property damage liability limits of $100,000.

What does 25k 50k 25k mean? ›

This allows you to pay for some, if not all, injuries and damages you're liable for in an accident. The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person. $50,000 in total bodily injury per accident. $25,000 for property damage per accident.

What is a perfect insurance score? ›

Insurance scores range between a low of 200 and a high of 997. Insurance scores of 770 or higher are favorable, and scores of 500 or below are poor. Although rare, there are a few people who have perfect insurance scores. Scores are not permanent and can be affected by different factors.

Who pays the damages that exceed the policy limits? ›

Ultimately, if the court ruling surpasses your policy limits, your insurance company becomes responsible for the full judgment, even the excess amount.

How does a deductible cut the cost of insurance? ›

Deductibles are how risk is shared between you, the policyholder, and your insurer. Generally speaking, the larger the deductible, the less you pay in premiums for an insurance policy. A deductible can be either a specific dollar amount or a percentage of the total amount of insurance on a policy.

Do old cars have expensive insurance? ›

Whether or not car insurance is cheaper for older cars depends on several factors. While new cars may be more expensive to insure due to their higher value, older cars may be costly as well. Although they may have a lower value, older cars may also have expensive parts that could make repairs expensive.

What does 100 insurance coverage mean? ›

Each number in this series represents a dollar amount — read in thousands — of coverage in different categories. 100: The first number represents the maximum amount of coverage for each individual bodily injury claim. In this example, up to $100,000 is available for each injured person.

What percentage should insurance be? ›

A common rule of thumb is at least 6% of your gross income plus 1% for each dependent. A stay-at-home parent should get enough life insurance to cover the costs incurred by the family if anything should happen to them.

Is 50/100/50 good enough? ›

The third number is the property damage liability limit, which would repair or replace the car of anyone you hit. 50/100/50: This level of coverage is recommended for those who have an older car, few assets, don't drive much and are on a tight budget, for instance college students and retirees who are downsizing.

Is 250/500 too much? ›

Yes, 250/500 is enough insurance for most drivers since it exceeds most states' minimum car insurance requirements as well as the median net worth.

References

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