“What the heck does this mean on my policy?” Auto Liability Limit Edition

“What the heck does this mean on my policy?”

Time to talk Auto Liability Limits! What are they? How are they normally listed on your policy? How much is enough? Everyone needs Liability to legally drive on the road, but what does that really mean?

Auto Liability Limits protect others on the road if you cause Bodily Harm or Property Damage to them. It’s important to select the right limits to protect yourself and others!

 Medical Payments pay out regardless of fault to help those in need get rapid attention for their wounds so that they don’t worsen.

** What does it mean when your policy says “100 / 300 / 100”? **
– The first number is in thousands. For example, 100 = $100,000. This is the amount that you have available for Bodily Injury damage to another person in an accident.
– The second number is in thousands. For example, 300 = $300,000. This is the amount that you have available for Bodily Injury damage to other people in the WHOLE accident.
– The third number is also in thousands. For example, 100 = $100,000. This is the total amount per accident you have available for all Property Damage you cause to a third party.

Keeping this information in mind, are State Minimums in MT enough to protect you and others on the road? Likely not. Montana’s state minimum requirements only state you need “25 / 50 / 20.” This means only $25,000 per person Bodily Injury, $50,000 per Accident Bodily Injury, and $20,000 per accident Property Damage.

With most auto accident-related hospital visits ranging from $18,000 – $95,000, there is quite the margin of risk for hurting others on the road with these limits. Also, with most new vehicles costing twice as much as the state minimum requirement for Property Damage, you are exposing yourself to a lot of potential issues financially.

 What can people do if you cause more damage than what your insurance will cover? They can pursue litigation against you, and ask that you pay out of pocket for the damages not covered by your insurance. This can result in them targeting your personal assets or even garnishing your wages!