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 per person injured in a collision, and a total of $100,000 in aggregate claims for a single collision. For example, let's say you were involved in a collision, and the driver deemed at fault for a collision has 50/100 bodily injury policy limits. In your vehicle, you were injured and had medical expenses totaling $80,000 and the passenger in your vehicle had $20,000 in medical expenses. Since the at fault driver had 50/100 bodily injury policy, you would only be able to recover $50,000 under the at fault driver’s policy (because that is the maximum per person injured in the collision), and the passenger would be able to recover the full $20,000 (because it is under the $50,0000 maximum per person in the collision).

One may ask, how is that fair that I would only recover $50,000 under the at fault driver’s liability policy, when I sustained $80,000 in medical expenses? The answer is that it is not fair, and the law firm of Ball & McCann, P.C. will ensure you get the recovery you deserve, regardless of policy limits. In the previous example, one could file a claim under his or her own underinsured motorist policy, if available, or you could pursue a cause of action against the at-fault driver personally.

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