The bodily injury liability insurance coverage amount is a “split limit,” such as $100,000/$300,000. The first figure is the maximum limit of coverage for one injured person. The second figure is the coverage limit for two or more persons in any one accident or occurrence. You will likely see your limits represented as $25,000/$50,000/$20,000 Bodily Injury per person/Bodily Injury per accident/Property Damage per accident.
Example 1:
You hit another driver and cause them $20,000 in injuries and $15,000 in property damage. Your insurance should pay both amounts because all injuries and damage fall below your coverage limits.
Example 2:
You’re at fault in a car crash, but it’s a bit more complicated because you injured the driver and two passengers. All three have $25,000 in injuries, totaling $75,000. You might think you’re covered because you have $25,000 in bodily injury per person. However, $50,000 is the maximum your insurer will pay out per accident based on your coverage. You’re now on the hook for the remaining $25,000.
Pro Tip:
Choosing more liability coverage than your’e legally required to have is generally a good idea, and a popular one. On average, over 50% of customers choose more than thier state’s minimum limits for bodily injury, and over 60% of customers choose more property damage coverage than their state requires.
