What does the "100/300/50" figure in auto insurance indicate?

The "100/300/50" figure in auto insurance represents the amounts covered for different types of liabilities, which is crucial for understanding how much protection you have in case of an accident. Specifically, this notation breaks down the coverage limits into three distinct components: the first number refers to the maximum coverage amount for bodily injury per person, the second number indicates the total maximum amount for bodily injury per accident for all individuals involved, and the third number pertains to the coverage limit for property damage per accident.

For instance, under a policy with "100/300/50" limits, if an insured individual causes an accident, the insurance would pay up to $100,000 for medical expenses for each injured person, up to $300,000 total for all injured parties in the accident, and $50,000 for damage to the other vehicle or property. This structure allows consumers to understand the extent of their insurance in protecting against financial losses resulting from incidents they may cause while driving. Understanding these limits is essential for making informed decisions about insurance coverage based on personal risk tolerance and financial exposure.