Understanding Automobile Insurance Policy Limits

It is critical that one understands his or her automobile insurance coverage and limits prior to committing to an insurance policy. Often times, an insured’s bodily injury coverage is stated in a three number format. For instance, 50/100/50. In this three number format, the first number represents the amount covered for a single person in the collision. The second number represents the amount covered in the entire collision. The third number represents the amount covered for property damage, which is a separate type of coverage. Using the prior figures, if you have a 50/100 bodily injury liability policy limit, that means that your insurance policy will cover up to a maximum of $50,000

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