What does 100-300 bodily injury mean?

In auto insurance, 100/300 means your policy covers up to $100,000 for bodily injury per person and up to $300,000 for total bodily injuries per accident when you are at fault.

Breakdown of the Numbers

• 100 ($100,000): The maximum amount your insurance will pay for the medical bills, lost wages, and legal fees of any single person injured in an accident you cause.
• 300 ($300,000): The maximum total amount your insurance will pay for all combined injuries in a single accident, no matter how many people are hurt.

How It Works in Real Life

If you cause a crash and injure two people:

• Person A has $40,000 in medical bills.
• Person B has $120,000 in medical bills.
• Your insurance pays $40,000 for Person A (under the $100k individual limit).
• Your insurance only pays $100,000 for Person B, because it hits your per-person cap.
• Even though your total payout is $140,000 (which is under the $300k per-accident limit), you must pay the remaining $20,000 for Person B out of pocket because it exceeded the $100,000 per-person limit.

The best amount for bodily injury liability coverage is generally 100/300 ($100,000 per person and $300,000 per accident) to properly protect your personal assets.

Recommended Coverage Tiers

• State Minimums (e.g., 25/50): These are often too low for real-world medical costs and leave you personally liable for major lawsuits.
• Good/Standard ($100,000 / $300,000): This is the sweet spot recommended by major experts like The Zebra and Consumer Reports because it covers most multi-person accident scenarios without extreme cost increases.
• High Net Worth ($250,000 / $500,000 or higher): If you own a home or have significant savings, you should match your limits to your total net worth.

How to Choose the Right Limit

• Match your net worth: If you cause a severe crash, injured parties can sue you for assets beyond your insurance cap.
• Consider an umbrella policy: If your insurer caps bodily injury limits at $500,000, buy a personal umbrella policy for an extra $1,000,000+ in liability protection.
• Compare costs: Upgrading from low limits to 100/300 usually only costs a small amount extra per month compared to the financial risk of being underinsured.

Yes, 100/300/100 auto insurance is considered good, strong coverage that is widely recommended by industry experts as a reliable baseline for most drivers.

What 100/300/100 Coverage Means

The numbers represent your split liability limits in thousands of dollars for accidents you cause:

• $100,000 for bodily injury per person.
• $300,000 for total bodily injury per accident.
• $100,000 for property damage per accident.

Why It Is Good Coverage

• Far exceeds state minimums: Most state-required minimums (often 25/50/25 or lower) are dangerously low and can leave you exposed to massive bills after a minor crash.
• Protects your assets: If you cause a severe accident with multiple injuries or total a luxury car, medical and legal costs can easily exceed low limits. This coverage protects your savings, home equity, and future wages from a lawsuit.
• Affordable upgrade: Increasing your policy from basic state minimums to 100/300/100 often costs only a modest amount more per month.

When You Might Need More

• High net worth: If you own significant assets, a home, or have high savings, consider upgrading to 250/500/100 or adding an umbrella policy.
• Urban driving: Drivers in busy cities face a higher risk of multi-vehicle collisions and expensive property damage.

Yes, a $1,000 collision deductible is generally considered a good, practical middle ground for most drivers.

How a $1,000 Deductible Works

• Lower monthly costs: Choosing a $1,000 deductible lowers your monthly or annual insurance premium compared to a lower option like $500.
• Out-of-pocket responsibility: If you get into an accident and file a claim, you pay the first $1,000 of the repair costs, and your insurance company pays the rest.
• Per-claim rule: Your deductible applies to each separate claim you file, not just once per year.

When a $1,000 Deductible is a Good Choice

• You have savings: You have at least $1,000 in an emergency fund that you can spend immediately without causing financial hardship.
• You want lower bills: You want to reduce your fixed monthly expenses and are comfortable taking on a slightly higher risk in an accident.
• You rarely file claims: You plan to pay out of pocket for very minor scratches or tiny dents rather than filing small claims that could raise your rates.

When You Should Choose a Different Amount

• Choose $500 (or lower) if: Coming up with $1,000 quickly would create a financial crisis or force you to go into debt.
• Skip collision coverage entirely if: Your car is older and worth less than $3,000 to $4,000, because a $1,000 deductible means the insurance payout won't be high enough to justify the cost of the coverage.

Yes, $300 a month for car insurance is on the higher side compared to the national average, which is about $136 to $176 per month for a full-coverage policy.

When $300 is High

• Single car with basic liability: If you drive an older, low-value car with a clean record and only basic state-minimum coverage, $300 a month is way too high.
• Clean driving history: Drivers with no accidents, tickets, or claims on a standard single vehicle should normally pay much less.

When $300 is Normal

• Multiple vehicles or drivers: Insuring two or more cars, or adding a teen driver to your policy, frequently pushes costs to $300 a month or higher.
• High-risk factors: Recent accidents, speeding tickets, a DUI, or poor credit can double or triple standard rates.
• Expensive or electric cars: Newer, luxury, or electric vehicles cost more to repair or replace, increasing your monthly premium.
• High-cost locations: Living in a densely populated metro area or a state with expensive insurance rates (like Florida, New Jersey, or New York) makes $300 common.

You can check NerdWallet to see how your state compares to the national average, or shop around using comparison tools to see if you can get a lower rate.