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Last updated: November 19, 2024
What Is 100/300 Car Insurance?
Is 100/300 coverage right for you?
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Purchasing car insurance can be confusing, especially when you see numbers and aren’t sure what they mean. “100/300” or “100/300/100” are some numbers you’re likely to see when shopping for car insurance. In short, the numbers represent liability limits in units of thousands of dollars. For example, 100/300/100 refers to $100,000 bodily injury liability per person/$300 per accident and $100,000 property damage liability per accident. Below, we explain how this coverage works, who should purchase it, which other types of insurance coverage are available, and more.
Editor’s note (last updated September 17, 2024): We have updated this page with the latest state requirements, pricing, and guidance regarding 100/300 insurance limits.
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What Does 100/300 Liability Coverage Mean?
100/300 refers to the amount of bodily injury liability coverage you have on your car insurance policy. The two numbers represent the following insurance coverage limits:
- $100,000 per person for bodily injury liability coverage
- $300,000 per accident for bodily injury liability coverage
These coverages apply when you’re at fault for an accident. Your insurance policy will cover up to $100,000 per person and $300,000 per accident for bodily injuries to other parties. Bodily injury coverage pays for other parties’ medical bills, lost wages, funeral expenses, physical therapy, legal expenses, and more.
What Is the Difference Between 50/100 and 100/300?
50/100 and 100/300 both refer to the bodily injury liability coverage limits. A 50/100 policy covers up to $50,000 per person and $100,000 per accident, while 100/300 offers $100,000 per person and $300,000 per accident. When you buy a policy, you can choose how much liability coverage to purchase. The higher your limits, the more you pay, but the greater financial protection you have in the event of an accident.
What Does 100/300/100 mean?
You may also see a third number, which represents property damage liability coverage. For example, 100/300/100 includes $100,000 of property damage liability. This coverage pays for damages you cause to another person’s property (often their car) in an accident you cause.
What Is Liability Coverage?
Liability insurance coverage, which most states require, covers damages to other people and property when you’re at fault for an accident. It does not pay for injuries or damages you or your passengers sustain.
Types of Liability Insurance
Liability insurance is broken down into two separate components: bodily injury coverage and property damage coverage.
- Bodily injury coverage: Bodily injury liability insurance covers the expenses for injuries to other parties, whether they were a driver in another vehicle, a passenger in your vehicle, a pedestrian, etc. Bodily injury liability insurance doesn’t cover the cost of injuries to you or other individuals listed on your insurance policy.
- Property damage coverage: Property damage liability insurance covers expenses to physical property. This insurance coverage pays for damage to other vehicles in accidents you’re at fault for. It also covers other items that could sustain damage, such as signposts, light poles, and fences. Similar to bodily injury liability coverage, property damage liability coverage doesn’t pay for damage to your vehicle or your other property.
What Does Liability Insurance Cover?
Liability car insurance is required in most states to protect individuals from financial losses at the hands of another driver. In short, it covers the cost of bodily injury and property damage, which means medical expenses, and vehicle repair or replacement. Liability insurance ensures that if someone is injured or has their vehicle damaged in an accident someone else caused, the driver who caused the accident will be responsible for those damages. Unfortunately, minimum limits may not be enough to cover the costs of a serious accident.
In an at-fault state, the driver who caused the accident is responsible for the other party’s bodily injury and property damage. But in a no-fault state, each driver’s insurance covers their own bodily injuries. If you are the driver who causes an accident, liability insurance passes the cost of damages onto your insurance company so you aren’t responsible for them out of pocket.
Is 100/300 Insurance Required?
At least some level of bodily injury liability insurance is required in all states except New Hampshire and Florida.
- Florida only requires property damage liability and personal injury protection (PIP).
- New Hampshire does not legally require auto insurance, but drivers who choose to purchase it must buy bodily injury liability coverage.
- Previously, New Jersey did not require bodily injury liability, but amended its requirements in 2023.
- Until 2024, drivers in Virginia could pay an uninsured motorist fee to legally drive without insurance, but the state now requires that all drivers carry liability coverage.
The amount and type of liability coverage you’ll need varies from one state to the next. And while nearly every state requires liability coverage, no state requires 100/300 bodily injury liability coverage limits. In fact, the limits in most states are considerably lower: just $25,000 per person and $50,000 per accident.
State Minimum Bodily Injury Coverages
The table below shows the bodily injury and property damage liability coverage for each state. As you can see, most states require just $25,000 per person and $50,000 per accident.
| State | Required bodily injury liability per person | Required bodily injury liability per accident |
|---|---|---|
| Alabama | $25,000 | $50,000 |
| Alaska | $50,000 | $100,000 |
| Arizona | $25,000 | $50,000 |
| Arkansas | $25,000 | $50,000 |
| California | $15,000 | $30,000 |
| Colorado | $25,000 | $50,000 |
| Connecticut | $25,000 | $50,000 |
| Delaware | $25,000 | $50,000 |
| District of Columbia | $25,000 | $50,000 |
| Florida | Not required | Not required |
| Georgia | $25,000 | $50,000 |
| Hawaii | $20,000 | $40,000 |
| Idaho | $25,000 | $50,000 |
| Illinois | $25,000 | $50,000 |
| Indiana | $25,000 | $50,000 |
| Iowa | $20,000 | $40,000 |
| Kansas | $25,000 | $50,000 |
| Kentucky | $25,000 | $50,000 |
| Louisiana | $15,000 | $30,000 |
| Maine | $50,000 | $100,000 |
| Maryland | $30,000 | $60,000 |
| Massachusetts | $20,000 | $40,000 |
| Michigan | $50,000 | $100,000 |
| Minnesota | $30,000 | $60,000 |
| Mississippi | $25,000 | $50,000 |
| Missouri | $25,000 | $50,000 |
| Montana | $25,000 | $50,000 |
| Nebraska | $25,000 | $50,000 |
| Nevada | $25,000 | $50,000 |
| New Hampshire | $25,000 (if you choose to purchase auto insurance) | $50,000 (if you choose to purchase auto insurance) |
| New Jersey | $15,000 | $30,000 |
| New Mexico | $25,000 | $50,000 |
| New York | $25,000 | $50,000 |
| North Carolina | $30,000 | $60,000 |
| North Dakota | $25,000 | $50,000 |
| Ohio | $25,000 | $50,000 |
| Oklahoma | $25,000 | $50,000 |
| Oregon | $25,000 | $50,000 |
| Pennsylvania | $15,000 | $30,000 |
| Rhode Island | $25,000 | $50,000 |
| South Carolina | $25,000 | $50,000 |
| South Dakota | $25,000 | $50,000 |
| Tennessee | $25,000 | $50,000 |
| Texas | $30,000 | $60,000 |
| Utah | $25,000 | $65,000 |
| Vermont | $25,000 | $50,000 |
| Virginia | $30,000 | $60,000 |
| Washington | $25,000 | $50,000 |
| West Virginia | $25,000 | $50,000 |
| Wisconsin | $25,000 | $50,000 |
| Wyoming | $25,000 | $50,000 |
How Much Coverage Do I 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.
GOOD TO KNOW:
100/300 is higher than required liability limits in all states, but don’t confuse it with full coverage. Full coverage includes other protections, such as uninsured/underinsured motorist, medical payments or PIP, and collision and comprehensive coverage, which provide significantly more protection than 100/300 in the event of an accident.
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. In a serious accident, the cost of injuries and damages could exceed state minimum limits. If the cost exceeds your policy’s 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, and are predicted to grow again by up to 8 percent in the year 2025.
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 wages. 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?
100/300 insurance is generally enough for most drivers, as it provides solid coverage for bodily injury liability. However, it may not be sufficient if you’re involved in a serious accident with high medical costs.
Consider your assets and financial situation when deciding if additional coverage is necessary. If you have considerable assets and a high net worth, someone could come after you in court for damages above and beyond what your insurance covers. Even if you don’t have the assets to pay for those excess damages, you could have your wages garnished if you owe money after an accident.
Most companies offer policies up to $500,000 in liability coverage. Higher limits or an umbrella policy afford extra protection to avoid out-of-pocket costs in the event of a lawsuit or serious accident.
How Much Does 100/300/100 Cost?
Like any insurance policy, the cost of 100/300/100 coverage varies significantly by state. Overall, 100/300/100 is a more affordable coverage type, given that it doesn’t include certain protections such as collision and comprehensive, which tend to be more expensive.
The following table shows the average cost of 100/300/100 liability-only insurance in the most populous U.S. states:
| State | Average annual cost for 100/300/100 insurance (liability-only) | Average monthly cost for 100/300/100 insurance (liability-only) |
|---|---|---|
| California | $816 | $68 |
| Texas | $886 | $74 |
| Florida | $1,475 | $123 |
| New York | $1,383 | $115 |
| Pennsylvania | $672 | $56 |
| Illinois | $576 | $48 |
| Ohio | $468 | $39 |
Ohio is the cheapest state to buy a 100/300/100 policy. In Ohio, this type of insurance costs on average only $468 a year, or $39 a month. The most expensive state for 100/300/100 coverage is Florida. In Florida, this type of coverage costs $1,475 per year, or $123 monthly.
But 100/300/100 coverage is still cheaper than full coverage. For example, a full coverage policy in Florida is $2,807 a year on average. In this instance, 100/300/100 insurance shakes out at roughly half the price.
How Much Car Insurance Do I Need?
The lower cost of 100/300 may be enticing, but it’s wise to consider purchasing full coverage insurance, which includes collision and comprehensive insurance in addition to liability coverage. You can learn more about collision and comprehensive coverage below, as well as a couple of other common types of car insurance coverage.
What Are the Different Types of Car Insurance?
When you sign up for car insurance, you’ll have the choice of many different types of coverages. Here are a few of the most common options:
- Collision insurance covers damages to your vehicle in the case of a collision with a stationary object or another vehicle in an accident you’ve caused.
- Comprehensive insurance covers damages to your vehicle when the cause is something other than a collision, such as theft, vandalism, or inclement weather.
- Uninsured/underinsured motorist insurance covers damages if you’re in an accident where the driver at fault is uninsured or underinsured.
- Personal injury protection (PIP) is a type of coverage required in states with no-fault insurance laws. This coverage pays for your medical expenses after an accident, regardless of who is at fault, as well as medical bills, lost wages, and other financial losses.
- Medical payments coverage is similar to PIP and is required in some states with at-fault insurance laws. While PIP covers medical bills, lost wages, and other financial losses caused by injuries, medical payments coverage is for you and your passengers only.
Many providers offer optional extras, such as loan/lease insurance, rental car reimbursements, roadside assistance, trip interruption, rideshare coverage, pet injury protection, and others. We recommend comparing two or more policies to find the provider with the best coverage for you at the best price.
Who Should Purchase More Coverage?
You should purchase full coverage if it would be cost-prohibitive to repair or replace your vehicle out of pocket. According to the Insurance Information Institute, about three-quarters of drivers purchase comprehensive and collision insurance in addition to liability insurance.
If you drive a low-value or old vehicle (usually 10 years old or more), it might make sense to forgo collision coverage if the cost of premiums is greater than the value of the vehicle itself. For example, if your car is worth $1,500 and your annual collision coverage is $1,750, purchasing collision coverage might not make sense.
You may also be required to carry full coverage insurance if you are financing or leasing your vehicle. Lenders generally require proof of insurance — including collision and comprehensive insurance — for anyone with an auto loan. In this case, insurance protects not only you, but also the bank that’s financing the vehicle. Those who have financed or leased their vehicles should also consider gap insurance, which covers the difference between what your insurance will pay for a totaled car and what is still owed on the car loan.
TIP:
If your insurance provider doesn’t offer gap insurance, you can usually purchase it from your lender or credit union.
Which Deductible Should You Choose?
Another decision you’ll have to make when you sign up for auto insurance is choosing a deductible. The deductible is the amount you’ll pay out of pocket before your insurance coverage kicks in. Deductibles on auto insurance often range from $0 to $1,000, and the average is $500.
The lower your deductible is, the higher your premium will be. However, you still want to choose a deductible low enough that you can pay it comfortably if you have to file a claim.
It’s important to note that your deductible doesn’t apply to liability claims. If you cause an accident and there are injuries or property damage, your insurance will cover those up to your policy limits without you having to pay the deductible. The deductible applies to comprehensive and collision claims only.
Recap
Understanding the different types and coverage limits of auto insurance is critical, as it helps you build the right policy for your needs. Bodily injury liability coverage is required in almost all states. While your state may not require limits as high as 100/300, it may be in your best interest to go that route. Or, consider purchasing a full coverage policy. To learn more about auto insurance, visit our auto insurance frequently asked questions.
Staff Writer
Erin Gobler has written about many finance topics including car insurance as well as mortgages, loans, taxes, and investing. Erin has been published in Forbes NextAdvisor, The Balance, and Fox Business. She has a Bachelor of Arts in Journalism from the University of Wisconsin Oshkosh and has been a freelance writer for over three years.
Citations
Hill-Burton Free and Reduced-Cost Health Care. HRSA. https://www.hrsa.gov/get-health-care/affordable/hill-burton
How Much Does Back Surgery Cost? Vivek P. Kushwaha, M.D. https://www.drkushwaha.com/education/much-back-surgery-cost/
Facts + Statistics: Auto insurance. III. (2022). https://www.iii.org/fact-statistic/facts-statistics-auto-insurance
How Do Auto Insurance Deductibles Work?. American Family Insurance. (2022). https://www.amfam.com/resources/articles/understanding-insurance/how-do-deductibles-work
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