When it comes time to sign up for your next car insurance policy, you’ll have to decide just how much bodily injury liability coverage you need. While 100/300 may not be required in any state, there are still some arguments for purchasing that much coverage.
Why Carry 100/300 Insurance Limits?
The purpose of bodily injury liability coverage is to pay for other parties’ injuries resulting from an accident you caused. And while 48 states require a minimum amount of coverage, the cost of damages could certainly exceed those liability limits. If the cost exceeds your insurance limits, you’ll have to pay the remaining amount out of pocket.
Healthcare costs have risen dramatically in recent decades. In fact, from 1979 to 2020, healthcare costs in the U.S. rose nearly 669 percent, which comes out to more than 16 percent of the inflation rate per year1.
For example, a single surgery to treat a serious spinal injury can approach $100,000, and that doesn’t even include other medical bills, physical therapy, and lost wages2. As a result, a serious accident could easily result in $100,000 of healthcare costs for a single person. Purchasing higher insurance limits ensures that in the case of a serious accident, your insurance will cover it.
Is 100/300 Insurance Enough?
While you might worry that 100/300 is too much coverage, we feel it’s not enough. As we mentioned, a serious accident could easily result in serious injuries with medical expenses and lost wages of $100,000. In fact, the total could exceed that.
Many auto insurance policies offer coverage up to 250/500, meaning $300,000 per person and $500,000 per accident of bodily injury liability coverage. No matter your financial situation, it makes sense to purchase as much coverage as you can afford.