Looking at an automobile insurance policy, you are likely to see amounts written such as 100/300. What does this mean?

see below

Explanation:

In an automobile insurance policy, the number 100/300 refers to liability coverage by the insurance company. They represent the amount of compensation the insurance company will pay for bodily injuries per accident when the insured is at fault.

The first digit represents the maximum amount in thousands the insurance will pay per person for bodily injuries. The second digit is the total maximum amount the insurance company will pay for bodily injuries per accident. In this case, 100 means the insurance company will cater for bodily to a limit of $100,000 per injured person. 300 means that the company will pay a maximum of $300,000 per accident for all bodily injuries per accident. Any amounts in excess will be met by the insured.

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