Michigan Auto Insurance 101: 250 / 500 vs 100 / 300 - What’s The Difference?

Michigan Auto Insurance 101: 250 / 500 vs 100 / 300 - What’s The Difference?

If you’ve ever reviewed your Michigan auto insurance policy, you’ve probably seen numbers like 100/300 or 250/500 listed under bodily injury liability coverage. But what do these numbers actually mean, and how do they impact your financial protection in the event of a serious accident?

Let’s break it down.

What Do 250/500 and 100/300 Mean?

These numbers refer to your bodily injury liability limits, which cover medical expenses and related costs if you're at fault in an accident and someone else is injured.

• 100/300 means:
• Up to $100,000 per person injured
• Up to $300,000 total for all injuries in one accident

• 250/500 means:
• Up to $250,000 per person injured
• Up to $500,000 total for all injuries in one accident

Why These Limits Matter

Medical bills from car accidents can add up fast. If you're carrying 100/300 coverage and someone’s medical expenses exceed $100,000, you’re personally responsible for the difference. That could mean having to go into savings, selling assets, or facing a lawsuit.

With 250/500 coverage, your insurance will cover much more in these situations, giving you greater peace of mind and financial protection.

Real-Life Example:

Imagine you're in an accident, and the total medical bills for the other party come to $400,000.

• With 100/300 coverage: Your policy covers $300,000 total, and you may owe $100,000 out of pocket.
• With 250/500 coverage: Your policy covers the full $400,000—no out-of-pocket cost.

Is the Higher Limit Worth It?

The price difference between 100/300 and 250/500 coverage is usually small—but the difference in protection is huge.

For just a bit more in premium, you can dramatically reduce your personal financial risk.

Plus, higher limits may help cover:

• Rising medical costs
• Legal defense fees if you're sued
• Multiple people injured in one accident

What Else Should You Review?

While bodily injury limits are critical, they’re just one part of your Michigan auto insurance policy.

You should also consider:

• Uninsured/Underinsured Motorist Coverage
• Property Damage Liability
• Personal Injury Protection (PIP)
• Collision & Comprehensive Coverage

Don’t Rely on Michigan’s Minimums

Michigan does have state-mandated minimum coverage, but in most cases, minimums are not enough to protect you and your assets.

Medical bills, legal claims, and loss of income can add up quickly—and you could be left paying the difference.

Final Thoughts

If you're deciding between 100/300 and 250/500 auto insurance coverage in Michigan, remember this:

250/500 coverage means more protection, fewer financial surprises, and better peace of mind.

When it comes to liability limits, it’s always better to be overprotected than under protected—especially when the cost difference is relatively minor.

If you're not sure what coverage is right for you, talk to a licensed Michigan insurance agent who can walk you through your options and help you make the best decision for your situation.