Schatz & Associates Insurance Blog

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Understanding Liability Limits

The liability limits on your auto policy covers bodily injury that you are/would be legally liable for in a court of law.  One common way to see your limts listed on your policy is 100/300 BI 100PD or 100/300/100.  This means that you have limits of $100,000 per person with a maximum of $300,000 per accident and $100,000 limit for any property damaged in an accident.

Let's take this scenario, you are in an accident and the other person suffers injuries of $100,000.  Your policy limits are $100,000 per person, so everything would be covered.  If you had lower limits of 25/50, this would mean that only $25,000 is covered per person, so in the same situation, your insurance would cover $25,000, but you would be responsible for the rest.  This situation assumes that only one person is injured in the accident.  There may be a case where there are two or three other people injured in the accident and if you don't have enough liability coverage, you could be responsible for a huge sum.

Look over your current auto policy and check out your liability limits. If you have questions or want to change your liability limits, give us a call and we'll help!