Breaking Down 100/300/100 Coverage
The three numbers represent three different liability limits:
First number: $100,000 bodily injury per person • Maximum your insurance pays for one person's injuries in an accident you cause • Covers medical bills, hospital stays, surgery, rehabilitation, lost wages • Also covers pain and suffering, legal defense, and settlements • Per person limit applies individually to each injured person
Second number: $300,000 bodily injury per accident • Maximum your insurance pays for all injuries combined in a single accident • This is the total limit regardless of how many people are injured • Acts as a cap even if multiple people have claims under the per-person limit • Per accident limit is the total payout across all injured parties
Third number: $100,000 property damage per accident • Maximum your insurance pays for property you damage in an accident • Covers other vehicles, buildings, fences, utility poles, and personal property • This limit applies to all property damage combined in a single accident • Per accident limit for all property, not per vehicle or item
What 100/300/100 does NOT cover: • Your own injuries (need Personal Injury Protection or Medical Payments coverage) • Your own vehicle damage (need Collision coverage) • Damages when you're not at fault (the other driver's liability pays, or your Uninsured Motorist coverage) • Intentional acts, business use, or excluded drivers
How 100/300/100 Coverage Works: Real-World Examples
Example 1: Single-person injury under limits
You run a red light and hit another car: • Other driver's injuries: $75,000 (medical bills + lost wages) • Vehicle damage: $22,000 • Total damages: $97,000
Your 100/300/100 policy pays: • $75,000 for bodily injury (under $100,000 per-person limit) • $22,000 for property damage (under $100,000 property limit) • Total insurance payment: $97,000 • You pay out-of-pocket: $0
Outcome: Fully covered. Your insurance handles everything.
Example 2: Multiple injuries, per-person limit exceeded
You cause a multi-car accident with three injured people: • Person 1: $150,000 in injuries (serious) • Person 2: $80,000 in injuries • Person 3: $40,000 in injuries • Total injuries: $270,000 • Property damage: $65,000
Your 100/300/100 policy pays: • Person 1: $100,000 (capped at per-person limit, not full $150,000) • Person 2: $80,000 (full amount) • Person 3: $40,000 (full amount) • Total bodily injury payout: $220,000 (under $300,000 per-accident limit) • Property damage: $65,000 (under $100,000 limit)
You owe out-of-pocket: • $50,000 to Person 1 (their remaining claim)
Outcome: Mostly covered, but you're personally liable for $50,000. Person 1 can sue you for the difference.
Example 3: Multiple injuries, per-accident limit exceeded
You cause a serious accident injuring four people: • Person 1: $110,000 in injuries • Person 2: $95,000 in injuries • Person 3: $85,000 in injuries • Person 4: $60,000 in injuries • Total injuries: $350,000 • Property damage: $80,000
Your 100/300/100 policy pays: • Bodily injury: $300,000 maximum (per-accident limit reached) • Property damage: $80,000
How the $300,000 is distributed among victims: • Typically pro-rated based on claim amounts and negotiations • Approximate distribution: - Person 1: $94,000 (not full $110,000) - Person 2: $81,000 (not full $95,000) - Person 3: $73,000 (not full $85,000) - Person 4: $52,000 (not full $60,000)
You owe out-of-pocket: • Approximately $50,000 total to cover the shortfalls • All four victims can sue you for their remaining amounts
Outcome: Your insurance covers most, but you face personal liability for the excess.
Example 4: Property damage exceeds limit
You lose control and crash into a luxury car and a storefront: • Luxury vehicle damage: $85,000 • Storefront damage: $45,000 • Total property damage: $130,000 • No injuries
Your 100/300/100 policy pays: • Property damage: $100,000 maximum
You owe out-of-pocket: • $30,000 (the amount exceeding your property damage limit)
Outcome: You're personally liable for $30,000. The vehicle owner and business owner can sue you.
100/300/100 vs. State Minimum Coverage
Most common state minimum: 25/50/25 • $25,000 bodily injury per person • $50,000 bodily injury per accident • $25,000 property damage per accident
Side-by-side comparison:
| Coverage Component | State Minimum (25/50/25) | Recommended (100/300/100) | Difference | |-------------------|-------------------------|--------------------------|------------| | Per-person injury | $25,000 | $100,000 | 4x more | | Per-accident injury | $50,000 | $300,000 | 6x more | | Property damage | $25,000 | $100,000 | 4x more | | **Annual premium** | **$400-600** | **$550-850** | **+$150-250** |
Real-world protection difference:
Scenario: You cause an accident injuring two people with $120,000 and $60,000 in damages, plus $35,000 vehicle damage
With 25/50/25 (state minimum): • Insurance pays: $75,000 total • You owe: $140,000 out-of-pocket • Result: Financial devastation, lawsuits, wage garnishment, possible bankruptcy
With 100/300/100: • Insurance pays: $215,000 total • You owe: $0 • Result: Fully protected, no personal liability
Cost to upgrade: $150-250/year ($12-20/month)
Value proposition: Paying an extra $15/month prevents potential $140,000+ personal liability. This is one of the best financial decisions you can make.
Is 100/300/100 Coverage Enough?
100/300/100 is adequate for most middle-income drivers with moderate assets.
100/300/100 is generally sufficient if: • Your net worth is under $250,000 • You don't own a home or have limited home equity • Your retirement savings are under $100,000 • Your annual income is under $75,000 • You drive in moderate-traffic areas • You rarely carry multiple passengers
Consider higher coverage (250/500/100 or more) if: • You own a home: Home equity is at risk in lawsuits • Net worth exceeds $250,000: Carry liability equal to or exceeding your assets • High income ($100,000+): Wage garnishment risk is higher • You have significant retirement savings: Some states allow seizure of retirement accounts • You drive in high-traffic areas: Higher risk of multi-vehicle accidents • You frequently carry passengers: More potential injury claims • Peace of mind: Want maximum protection regardless of net worth
Coverage progression by net worth:
Net worth under $100,000: • Minimum: 100/300/100 • Better: 100/300/100 + uninsured motorist
Net worth $100,000-$300,000: • Minimum: 100/300/100 • Better: 250/500/100 • Best: 250/500/100 + $1M umbrella policy
Net worth over $300,000: • Minimum: 250/500/100 • Better: 500/500/100 + $1-2M umbrella policy • Best: Maximum limits + $2-5M umbrella policy
Cost to upgrade beyond 100/300/100: • 100/300/100 to 250/500/100: +$10-20/month • Adding $1M umbrella policy: +$15-30/month • Total upgrade cost: $25-50/month for significantly better protection
How Much Does 100/300/100 Coverage Cost?
Average cost to upgrade from state minimum to 100/300/100: • Additional annual premium: $150-300/year • Additional monthly premium: $12-25/month • Percentage increase: 25-50% more than state minimums
Factors affecting 100/300/100 premium cost:
1. Your driving record • Clean record: Lower premiums • At-fault accidents: +30-80% for 3-5 years • Speeding tickets: +15-30% per violation • DUI: +100-300% for 5-10 years
2. Your location • Urban areas: Higher premiums (more traffic, more claims) • Rural areas: Lower premiums • High-litigation states: 20-40% higher liability premiums
3. Your age and experience • Teen drivers (16-19): Highest premiums • Young adults (20-24): High premiums • Adults (25-65): Lowest premiums • Seniors (65+): Moderate increase
4. Your vehicle • Liability premiums vary less by vehicle than collision/comprehensive • High-performance cars: Slightly higher liability premiums • Family sedans: Lower premiums
5. Your annual mileage • Under 7,500 miles/year: 10-15% discount • 7,500-15,000 miles/year: Standard rate • Over 15,000 miles/year: 10-20% increase
Sample premiums by driver profile:
Profile 1: Low-risk driver • Age 35, married, clean driving record, suburban area • State minimum (25/50/25): $500/year • 100/300/100: $650/year • Increase: $150/year ($12/month)
Profile 2: Higher-risk driver • Age 28, single, one at-fault accident, urban area • State minimum (25/50/25): $900/year • 100/300/100: $1,200/year • Increase: $300/year ($25/month)
Profile 3: Teen driver • Age 17, clean record (new driver), suburban area • State minimum (25/50/25): $2,500/year • 100/300/100: $3,000/year • Increase: $500/year ($42/month)
Key insight: The percentage increase is consistent, but the dollar amount varies. Even high-risk drivers should carry 100/300/100—the extra cost is manageable compared to personal liability risk.
How to Get 100/300/100 Coverage
Step 1: Call your current insurance agent • Request a quote for 100/300/100 coverage • Ask about the premium difference from your current coverage • Most agents can provide this quote in under 5 minutes
Step 2: Compare quotes from multiple insurers • Get quotes from at least 3-5 companies • Rates vary dramatically—shopping can save 20-40% • Online quote tools make this easy (takes 10-15 minutes total)
Step 3: Bundle to save money • Combine auto + home/renters insurance with the same company • Typical savings: 10-25% on both policies • Often makes upgraded coverage more affordable
Step 4: Ask about all discounts • Good driver discount (no accidents/tickets) • Multi-car discount • Low mileage discount • Defensive driving course • Good student discount (for young drivers) • Paperless billing / auto-pay • Total discount potential: 20-40%
Step 5: Consider raising deductibles • Increase collision/comprehensive deductibles from $500 to $1,000 • Savings: $200-400/year • Use savings to fund higher liability limits
Step 6: Make the switch • Most coverage changes are effective immediately or within 24 hours • Don't wait—inadequate coverage is a daily financial risk
Step 7: Review annually • Reassess coverage limits yearly • As net worth grows, consider increasing to 250/500/100 or adding umbrella policy • Shop for better rates every 1-2 years
Frequently Asked Questions
100/300/100 means $100,000 bodily injury liability per person, $300,000 bodily injury liability per accident, and $100,000 property damage liability. The first number is the maximum paid for one person's injuries, the second is the total for all injuries in one accident, and the third is the maximum for all property damage in one accident.
Upgrading from typical state minimum (25/50/25) to 100/300/100 costs approximately $150-300 per year more, or $12-25 per month. The exact cost depends on your driving record, location, age, and vehicle. This modest increase provides 4-6x more liability protection than state minimums.
100/300/100 is adequate for most middle-income drivers with net worth under $250,000. However, homeowners, high earners, or those with significant assets should consider higher limits (250/500/100) or adding an umbrella policy. Carry liability coverage equal to or exceeding your total net worth.
250/500/100 provides higher liability limits: $250,000 per person (vs. $100,000), $500,000 per accident (vs. $300,000), and $100,000 property damage (same). This upgrade covers more serious accidents and protects higher net worth. It typically costs only $10-20/month more than 100/300/100.
Yes, you can increase your liability limits at any time by contacting your insurance agent or updating your policy online. Changes are typically effective immediately or within 24 hours. There's no waiting period to upgrade coverage, and most insurers allow mid-policy changes with adjusted premiums.