When an agent quoting an auto policy starts explaining the coverage how often does the customer understand the numbers? What does 100/300/100 mean? Part A of standard auto policy is liability coverage often expressed by 3 numbers. In 100/300/100 the first number represents the bodily injury coverage, in the case $100,000 per person. 300 represents the coverage per occurrence, $300,000 per incident. The last number is the coverage for property damage again in this case $100,000. This section also provides for the cost of defending the insured in any suit in addition to the stated coverages. Part A does not provide coverage for the insureds auto.

How much coverage you need is a factor of your financial situation. State minimum is 25/50/10. If that’s your coverage the insurance provider protects you up to $50,000 in bodily injury and $10,000 for personal property. After that a victim would have to come after you personally for any other damages. It’s not hard to see one accident exceeding $10,000 in repairs on most cars. After coverage of 250/500/250 most companies offer a personal liability umbrella of one or two million that follows the individual. Understanding your exposure allows you to choose the right amount of protection. If you are still unsure you might consult with your attorney or financial planner.