How are auto insurance limits listed on a policy?

About auto Insurance Limits

Before getting auto insurance quotes, you must decide how much coverage you need. Each policy has limits to how much coverage the car insurance company will provide. The limits are normally represented on a policy with a series of numbers, such as 50/100 or 100/300 coverage.

The first number is the per person limit (in thousands of dollars) and the the second number is the per occurrence limit (in thousands of dollars).

Per-person limit

The per person limit is the maximum amount the insurance company will pay for any one person’s injuries arising from a single incident or accident. For example if you have a policy with 50/100 limits, the insurance company will pay up to $50,000 in bodily injury damages sustained to one person.

Per-occurrence limit

The per occurrence (or per accident) limit is the highest amount your insurance company will pay for all claims from a single incident. This is the total amount of damages for bodily injuries of all parties. For example if you have a policy with 100/300 limits, the insurance company will pay up to $300,000 in bodily injury damages sustained per occurrence.