What is meant by the term, ‘liability policy limits’?


Normally, insurance professionals and insurance agents opine that the ideal car insurance policy limits are 100/300/100 in insurance parlance. That means that the policy limit for bodily injury per person should be 100,000, the limit for bodily injury per car should be 300,000, and the limit for property damage per accident should be 100,000. However, these limits would depend on the financial capacity of a particular person and the area in which the person is driving. For example, if a person is at fault in a freak accident in a costly suburb and the landscape and other property of another person had been damaged heavily, then the cost of the damage could be more than 100,000. Normally, the minimum limits set by the states are much less than the abovementioned amounts. Even then, it is prudent to have decent cover to meet any eventuality.