What those numbers mean on your car insurance card – 10/25/10 or 50/100/50 or 100/300/100? Ultimately higher the number the higher insurance premium will be. We’ll try to summarize and explain those numbers to you so you can make an educated choice. The first number on your car insurance policy is so called “bodily injury limit per person”. It simply means that your insurance company will pay injured person that amount if you are in an at-fault accident. For example, if you have a 10/25/10 policy it means your carrier will pay out up to $10,000 for each person injured in an accident that was your fault. Anything above $10K will have to come out of your pocket.
The second number is the total maximum limit “bodily injury per accident,”. This simply means maximum amount your policy will pay in the case of an at-fault accident. Once again we can use the same example of 10/25/10 limits. So, the first number of your policy will pay up to $10,000 for each individual injured in an at-risk accident. The second number, in this example $25,000 means that if more than one individual is injured in the accident, this is the maximum amount your insurance will pay. Anything above that means you’ll be responsible for paying out the remainder of the damages to injured people. Another example would be 100/300/100 policy limits. If three people got injured in at-fault accident, then policy will pay up to $100K each but no more than $300K maximum policy limit.
The last number refers to the amount of property damage (your vehicle) your policy will pay out. As in example above 10/25/10 policy covers up to $10,000 for damaged property in an at-fault accident. Most of the time the property is the car(s) of the other driver(s) or a home if vehicle hits the building.
Please keep in mind that different states have different liability coverage limits and you usually see these numbers in the context of states. Any standard and of course cheapest policy quote will almost always have your State’s required minimum limits factored in to the price of the policy cost. Of course, states with higher minimum limits will have higher insurance premiums. It’s always recommended to carry higher limits than your state’s minimum requirements. With costs of medical bills increasing and values of vehicles going up it’s highly recommended to carry at least 50/100/50 limits.