I was in a car wreck yesterday. It was probably my fault. I looked at my automobile liability insurance policy and it says that I have liability limits of $100,000 / $300,000. What does that mean?
It means that for any one car wreck that is your fault your insurance company will pay a person injured in the wreck up to $100,000 in losses and damages they suffer. If more than one person is injured in the wreck, the company will pay, on your behalf, up to $300,000 but no more than $100,000 for any one person.
So, if one person was hurt in the wreck, the insurer will pay no more than $100,000 in damages. If two people were hurt, the insurer will pay up to $200,000, but no more than $100,000 per person. If three people were hurt, the insurer will pay up to $300,000, but no more than $100,000 per person. Note that each person who is injured does not automatically get $100,000 – they must demonstrate amount of their damages and can recover up to $100,000 each.
To the extent that a person injured in the wreck has claim worth more than $100,000 you are personally responsible for the amount of damages over $100,000 if the wreck was your fault.
Your policy also has a separate provision for paying property damage to the other driver’s car if it is determined that the wreck was your fault.
John Day represents personal injury victims and families of wrongful death victims. He is board-certified as a civil trial specialist by the National Board of Trial Advocacy and, in fact, served as President of the organization. He is an elected member of the prestigious American College of Trial Lawyers. His book, "Day on Torts: Leading Cases in Tennessee Tort Law," is used by judges and lawyers across Tennessee to further their understanding of personal injury and wrongful death law in Tennessee. In 2009, Best Lawyers named John "Best Personal Injury Lawyer" for Nashville; he was the first recipient of that award. Best Lawyers also named John as "Best Medical Malpractice Lawyer in Nashville" for 2010. John does not charge for an initial consultation and accepts personal injury and wrongful death cases on a contingent fee basis. You can reach him by telephone at 615.742.4880 or by email by clicking here.