What the three numbers mean
Your liability limits are usually written as three numbers, like 100/300/100. In thousands of dollars, they mean:
- First number — bodily injury liability per person injured.
- Second number — bodily injury liability per accident, total, across everyone injured.
- Third number — property damage liability, for the other party's vehicle or property.
So 100/300/100 means up to $100,000 for one person's injuries, $300,000 total per accident, and $100,000 for property damage.
Why state minimums are a trap
Every state sets a legal minimum, and every state's minimum was set to make insurance affordable — not to make you whole. Minimum limits were written when vehicles and medical care cost a fraction of what they do now. A single serious injury can blow past a minimum limit quickly, and anything above your limit comes out of your pocket — including, potentially, wage garnishment.
The uncomfortable math: you don't buy liability insurance to protect your car. You buy it to protect everything you own from a lawsuit after a bad day.
The coverage most people are missing
Uninsured and underinsured motorist (UM/UIM). This covers you when the person who hits you has no insurance, or nowhere near enough of it.
Think about what your liability limits protect: other people. If someone with minimum limits — or no insurance at all — seriously injures you, their policy is what pays your medical bills. UM/UIM is what fills that gap. Given how many drivers carry minimum or no coverage, this is frequently the most undervalued coverage on a personal auto policy.
Collision and comprehensive
- Collision — damage to your car from an accident, regardless of fault.
- Comprehensive — theft, fire, vandalism, hail, flood, falling objects, and animal strikes.
Neither is legally required, but your lender will require both if the car is financed or leased. If your vehicle is older and paid off, there's a genuine conversation to have about whether the premium still makes sense against what the car is worth.
Coverages worth asking about
- Medical payments — covers medical costs for you and your passengers regardless of fault.
- Rental reimbursement — pays for a rental while your car is being repaired after a covered loss.
- Roadside assistance — usually inexpensive when added to a policy.
- Gap coverage — if you owe more than the car is worth, this covers the difference after a total loss. Matters most on newer financed vehicles.
A practical way to set your limits
Ask what you'd stand to lose in a lawsuit — home equity, savings, future wages — and set liability limits with that in mind rather than around the legal floor. Then, if the number you land on is meaningful, look at whether an umbrella policy gets you further for less than raising the underlying limits alone.
Raising liability limits is often cheaper than people expect. The expensive parts of an auto premium are usually collision and comprehensive, not liability.
Common questions
What do the numbers like 100/300/100 mean on my car insurance?
They are your liability limits in thousands of dollars: $100,000 in bodily injury coverage per person, $300,000 in bodily injury per accident total, and $100,000 in property damage coverage for the other party's vehicle or property.
Is state minimum car insurance enough?
Usually not. State minimums were set for affordability, not to make you whole, and they have not kept pace with vehicle and medical costs. Any damages above your limit come out of your own assets.
What is uninsured motorist coverage and do I need it?
Uninsured and underinsured motorist coverage pays for your injuries when the at-fault driver has no insurance or not enough of it. Because many drivers carry only minimum limits or none at all, it is one of the most valuable and most overlooked coverages on a personal auto policy.
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