Question: What is 250/500/100 number for bodily injury and property damage on a policy mean? Are these deductible amounts or what?
Answer: The numbers you referred to, 250/500/100, are liability limits -- not deductible amounts.
It can be confusing learning to read limits for liability insurance since there are two sets of number. The first set -- 250/500 in this case -- refers to your bodily injury limits and then the last number -- 100 here --is your property damage limit.
In the insurance industry liability limits are written altogether as 250/500/100. These in no way refer to deductible amounts. In fact, liability coverage does not have a deductible associated with it. Instead the amounts given for liability tell you the maximum payout amounts (limits) you have chosen for your liability coverage.
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/incident (in thousands). So the dual coverage limits refer to the maximum amounts that will be paid per person, per incident, respectively.
In basic language, 250/500 stands for $250,000 per person for bodily injuries sustained in one accident and topping out at a maximum payout of $500,000 for all claims against the bodily injury liability coverage.
Bodily injury iability (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 bodily injury liability insurance to cover a judgment against you in a lawsuit, so that your personal assets are not put at risk. It is advised that 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's minimum limits. 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 250/500 is above the recommended amount of 100/300 so should be very good coverage for you.
The remaining 100 of the 250/500/100 limits you referred to is the limit for property damage liability. This means with this coverage the insurance company's top limit they will pay out for the other person's property damage that you cause in your vehicle is $100,000.
Property damage liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object and with a limit of $100,000 you should be protected well.
As we mentioned, liability coverages do not come with a deductible. Physical coverage damages of collision and comprehensive do come with a deductible that you choose when you set up your car insurance policy. A deductible is the dollar amount you must pay on each loss to which the deductible applies. The insurance company then pays the remainder of each covered loss up to the policy limits after your deductible is paid out.