At first it can be confusing learning to read limits for Bodily Injury Liability since there are 2 sets of numbers such as 100/300.
The first number is the maximum coverage for Bodily Injury Liability for one person injured in an accident (in thousands). The second number is the maximum coverage for Bodily Injury Liability for one accident (in thousands).
In basic language this 100/300 stands for $100,000 per person for bodily injuries sustained in one accident and topping out at a maximum payout of $300,000 for all claims against the Bodily Injury Liability coverage. So the 100 is for the maximum $100,000 per person coverage and the 300 is for the maximum $300,000 limit for all bodily injury claims from one incident or accident.
Bodily Injury Liability (BI) insurance is coverage for other people's injuries or death for which you are responsible. Bodily Injury Liability coverage can also provide legal defense if another party in the accident files a lawsuit against you. In general, you will want enough BI insurance to cover a judgment against you in a lawsuit, so that your personal assets are not put at risk. You should always buy the maximum amount of insurance that you can afford.
The first part of determining how much Bodily Injury Liability insurance you need is finding out your state minimum insurance requirements. You will need Bodily Injury Liability limits of this amount and possibly more so that your house and personal items are not put in jeopardy if a lawsuit comes about due to a lawsuit. The amount you asked about of 100/300 is the recommended amount. The dual coverage limits refer to the maximum amounts that will be paid per person, per incident, respectively.
If you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy cause a serious injury where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk.
Determining if you need bodily injury insurance coverage above your state's minimum limits, will depend upon your own personal situation. The insurance industry's recommended coverage amount is 100/300. This would give you coverage of $100,000 per person for a total of $300,000 per incident as we discussed.