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Ever take a look at your auto insurance policy and wonder what all those numbers mean besides auto liability limits? Or you may have run across confusion when comparing two or more car insurance quotes with different liability limits? Has your employer required or demanded you to obtain car insurance with 100 / 300 limits?
It is at times like these when drivers begin to familiarize themselves with what liability insurance actually covers and what the coverage amounts shown on an insurance policy actually mean.
Auto Liability Split Coverage Insurance Limits
In most states, liability insurance is a mandatory requirement for all auto owners and drivers. Each state mandates a minimum liability coverage amount, and is mandatory because it helps protect other people and their property.
What is Split Limit Coverage?
Split limit coverage is a break down of liability insurance coverage. Three separate dollar amounts would apply in the event of an accident. These three parts are:
- Bodily Injury Per Person
- Bodily Injury Per Accident
- Property Damage
25 / 50 Liability Insurance Limits
In many states, such as Illinois, Indiana and Kentucky, 25 / 50 split limits are the minimum liability limits mandated. So let’s take a look at what those numbers exactly mean and what are the differences when comparing to 100 / 300 coverage.
Here’s the break down:
- 25 / 50 / 20 – The first limit, $25,000, is a per person limit. This is the maximum dollar amount that would be paid to any one injured third-party.
- 25 / 50 / 20 – The second limit, $50,000, is a per occurrence limit. This is the maximum dollar amount that will be paid to all injured persons.
- 25 / 50 / 20 – The third limit, $20,000, is a per occurrence limit that applies to property damage claims. This is the maximum dollar amount that the insurance company will pay for any third-party property damage claims resulting from an auto accident.
50 / 100 Liability Insurance Limits
In just a couple states, 50 / 100 liability split limits are the mandatory amounts mandated by law. But, it’s very common that drivers opt in for this “mid-level” amount of liability insurance coverage.
100 / 300 Liability Insurance Limits
100 / 300 liability split limits are never mandated by state authority, but are typically “standard” limits of liability amongst national auto insurance carriers.
Food delivery drivers, couriers, and others that use a vehicle for work, may be required by their employer to carry 100/300 insurance limits. Rideshare companies including Lyft and Uber also require 100/300/100 insurance in order to drive for them.
100 / 300 insurance coverage pays up to:
- $100,000 to any one individual third-party
- $300,000 maximum to all third-party injured persons
With medical care costs on a steady increase, combined with inflation, 100 / 300 insurance coverage is becoming more of an adequate amount of liability insurance to protect one’s assets, but may also be inadequate to some.
How To Determine Whether You Need 25/50, 50/100, or 100/300 Liability Insurance?
What happens if injuries or property damage exceed the maximum amounts an insurance company will pay?
When the limits on a car insurance policy are reached and exhausted after an accident, the liable driver will be held personally responsible for the balance of damages.
One huge factor when reasoning and making your decision is to consider your total net worth. A general rule of thumb: if your net worth is more than your annual salary, it is a good idea to consider higher than minimum liability limits. Alternatively, an individual with a low net worth doesn’t have too much to go after in the case of an accident related lawsuit, and isn’t desirable or enticing in the eyes of an attorney. Be sure to ask your agent for more information.
Do You Have Enough Liability Coverage?
Purchasing an insurance policy may seem confusing as it is let alone trying to determine the amounts of coverage that are adequate for your individual needs.
No matter what situation you’re in, it’s always a good idea to request a quote to increase your liability limits for an idea of premium difference. Surprisingly, in many cases, it is not as expensive as you think.
For a quick car insurance quote with 100/300/100 limits, up to 500/1mil/500, give us a call.
If you live in or near Joliet, Aurora or Chicago, IL, click for an online car or SR-22 insurance quote.
Minimum Liability Insurance Limits By State
The following are mandatory minimum liability limits by state as of the end of year, 2018.
| Alabama | Liability: 25/50/25 |
| Alaska | Liability: 50/100/25 |
| Arizona | Liability: 15/30/10 |
| Arkansas | Liability: 25/50/25 |
| California | Liability: 15/30/5 |
| Colorado | Liability: 25/50/15 |
| Connecticut | Liability: 25/50/25 UM/UIM BI: 20/40 |
| Delaware | Liability: 25/50/10 PIP: 15/30 |
| District of Columbia | Liability: 25/50/10 UM BI: 25/50 UMPD: $5,000 |
| Florida | Liability: 10/20/10 PIP: $10,000 BI liability not required by Florida but many carriers require 10/20 |
| Georgia | Liability: 25/50/25 |
| Hawaii | Liability: 20/40/10 PIP or PPO: $10,000 |
| Idaho | Liability: 25/50/15 |
| Illinois | Liability: 25/50/20 UM BI: 25/50 |
| Indiana | Liability: 25/50/10 ( effective July 1, 2018: 25/50/25) |
| Iowa | Liability: 20/40/15 |
| Kansas | Liability: 25/50/25 UM/UIM BI: 25/50 PIP: $4,500 medical/$900 work loss |
| Kentucky | Liability: 25/50/25 PIP: $10,000 |
| Louisiana | Liability: 15/30/25 |
| Maine | Liability: 50/100/25 UM/UIM BI: 50/100 Medical payments: $2,000 |
| Maryland | Liability: 30/60/15 UM/UIM BI: 30/60 UMPD: $15,000 PIP $2,500 |
| Massachusetts | Liability: 20/40/5 UM/UIM BI: 20/40 PIP: $8,000 |
| Michigan | Liability: 20/40/10 PIP: Medical and work loss PPI: $1,000,000 |
| Minnesota | Liability: 30/60/10 UM/UIM BI: 25/50 PIP: $40,000 |
| Mississippi | Liability: 25/50/25 |
| Missouri | Liability: 25/50/10 UM BI: 25/50 |
| Montana | Liability: 25/50/20 |
| Nebraska | Liability: 25/50/25 UM/UIM BI: 25/50 |
| Nevada | Liability: 15/30/10 (effective July 1, 2018:25/50/20) |
| New Hampshire* | Liability: 25/50/25 UM/UIM BI: 25/50 Medical payments: $1,000 *Insurance not mandatory in New Hampshire |
| New Jersey | Liability: 15/30/5 (standard policy) UM/UIM BI: 15/30 UMPD: $5,000 PIP: $15,000 |
| New Mexico | Liability: 25/50/10 |
| New York | Liability: 25/50/10 UM BI: 25/50 PIP: $50,000 |
| North Carolina | Liability: 30/60/25 UM BI: 30/60 UMPD: $25,000 |
| North Dakota | Liability: 25/50/25 UM/UIM BI: 25/50 PIP: $30,000 |
| Ohio | Liability: 25/50/25 |
| Oklahoma | Liability: 25/50/25 |
| Oregon | Liability: 25/50/20 UM BI: 25/50 PIP: $15,000 |
| Pennsylvania | Liability: 15/30/5 First party benefits (PIP): $5,000 |
| Rhode Island | Liability: 25/50/25 |
| South Carolina | Liability: 25/50/25 UM BI: 25/50 UMPD: $25,000 |
| South Dakota | Liability: 25/50/25 UM/UIM BI: 25/50 |
| Tennessee | Liability: 25/50/15 |
| Texas | Liability: 30/60/25 |
| Utah | Liability: 25/65/15 PIP: $3,000 |
| Vermont | Liability: 25/50/10 UM/UIM BI: 50/100 UMPD: $10,000 |
| Virginia | Liability: 25/50/20 UM/UIM BI: 25/50 UMPD: $20,000 |
| Washington | Liability: 25/50/10 |
| West Virginia | Liability: 25/50/25 UM BI: 25/50 UMPD: $25,000 |
| Wisconsin | Liability: 25/50/10 UM BI: 25/50 |
| Wyoming | Liability: 25/50/20 |
