In auto insurance coverage, what does a 100/300/50 policy indicate?

A 100/300/50 policy in auto insurance coverage indicates specific limits for bodily injury and property damage. The first number, 100, represents the maximum amount the insurer will pay for bodily injury per person involved in an accident, which is $100,000. The second number, 300, indicates the total maximum amount the insurance will pay for bodily injury for all individuals in that accident, capping at $300,000. The last number, 50, denotes the maximum amount for property damage claims resulting from the accident, which is $50,000.

Thus, this policy structure is designed to provide a balance of coverage for both bodily injury to individuals and damage to property, ensuring that policyholders are protected against significant financial liabilities resulting from auto accidents. Understanding this structure helps consumers make informed decisions about the appropriate levels of coverage they need in their policy.