Auto Liability Limits Confusion ~ What the HECK!?!

You will see your liability limits listed on your policy as such: 100/300/100 (or a different combination of limits). We know that this doesn't explain anything to you as to what your limits are and how those numbers actually affect you. Here's the breakdown of how to read and understand your limits:

1. the first number in this example is 100 and it applies to the amount of bodily injury coverage you have if you are at fault for an accident and only one person is injured. In this case you'd have $100,000 to pay for that individual's medical needs after an accident. If their medical expenses are greater than your limit, you'll be personally responsible for the excess amount.

2. the second number here is 300 which means that you have up to $300,000 in bodily injury coverage in the instance that you are at fault for an accident and more than one person is injured and has medical expenses.

3. the third number doesn't have anything to do with bodily injury or medical expenses. Instead, it has to do with any physical property that is damaged when you are at fault for an accident. In our example you'd have $100,000 in property damage to pay for the other person's property that was damaged. Just like the bodily injury limits, when you max out your coverage you are personally responsible for paying the excess.

There are many options for liability limits, but the lowest limits are often referred to as the state minimums. Each state has its own set of minimum liability limits but in Nebraska the minimums are 25/50/25. This means that you must carry at least $25,000 in bodily injury liability per person / $50,000 in bodily injury liability per accident / $25,000 in personal property liability per accident. Believe it or not, these limits can be maxed out rather quickly in today's economy. This is why it's important to discuss your coverage with your agent regularly and see if you are sitting in a safe seat when an accident occurs. Our team is always happy to go over your coverage with you to make sure you understand what you have and how it will work for you if you have an accident.

One important thing to remember is that your liability limits have nothing to do with covering your bodily injury or personal property. That's where medical payments, comprehensive, and collision coverage comes in and we'll blog about that for you soon!