Three numbers on your declarations page decide how much of a serious accident your insurance company pays and how much becomes your problem. Most drivers in Montgomery County could not tell you what theirs are. If yours read 30/60/15, you carry the Maryland minimum. If they read 100/300/100, you have what many people think of as “good coverage.” Whether that is enough depends on what the numbers actually mean, and on what you have to lose.
What Split Limits Mean
Liability limits on a Maryland auto policy are usually written as three numbers, in thousands of dollars:
- First number: bodily injury liability per person: the most the policy pays for any one injured person.
- Second number: bodily injury liability per accident: the most it pays for all injured people combined.
- Third number: property damage liability per accident: other people's cars, fences and storefronts.
So 100/300/100 means $100,000 per person, $300,000 per accident for injuries, and $100,000 for property damage. Both injury caps apply at once: no single person can receive more than the per-person limit, and the total across everyone cannot exceed the per-accident limit. Once a limit is used up, whatever remains of a judgment is the driver's personal responsibility.
Worked Examples: What the Policy Pays and What You Owe
These use policy-limit arithmetic only. Real claims involve negotiation, defense and collection, but the arithmetic shows where your personal exposure starts.
Example 1: 100/300/100, one person, $600,000 in injuries
You run a red light on Rockville Pike and seriously injure one driver, who is awarded $600,000. The per-person limit caps the policy at $100,000. The $300,000 per-accident limit does not help, because only one person was hurt. The remaining $500,000 is your personal exposure.
Example 2: 100/300/100, three people, $600,000 total
Three people have claims of $250,000, $200,000 and $150,000. Each is capped at $100,000, so the policy pays $300,000, which is also exactly the per-accident limit. The remaining $300,000 is yours.
Example 3: The same accidents at 250/500/100
In Example 1, the policy pays $250,000 and your exposure drops to $350,000. In Example 2, the three claims fit under the $250,000 per-person cap and add up to $600,000, so the $500,000 per-accident limit applies: the policy pays $500,000 and your exposure drops to $100,000. Add a $1 million personal umbrella over 250/500/100 and, in both examples, the umbrella responds to the excess up to its limit.
Example 4: Property damage at the minimum
You rear-end a newer SUV and push it into a second car, and repairs to both total $45,000. A $15,000 property damage limit pays $15,000; the other $30,000 is yours.
These are illustrations, not legal advice; an attorney can tell you how a judgment would actually be collected in your situation.
Maryland's Minimums Are a Floor
Maryland requires 30/60/15 liability, uninsured motorist coverage in matching amounts, and $2,500 of PIP (which you may waive in writing). Those minimums exist to make sure an injured person can collect something; they were not designed to protect a household with a home and savings. Our guide to Maryland car insurance requirements walks through each required coverage.
The Other Direction: UM/UIM and Enhanced UIM
Liability limits protect other people from you. Uninsured and underinsured motorist coverage protects you and your passengers from drivers who carry too little. In Maryland your UM/UIM limits generally match your liability limits unless you choose in writing to carry less, one more reason to raise liability, since it usually raises UM/UIM with it.
Standard UIM in Maryland is reduced by what the at-fault driver's insurer pays. Since July 1, 2018, carriers have offered enhanced underinsured motorist coverage, which you elect in writing and which is not reduced that way. Say you carry $250,000 of UIM, the at-fault driver has a $30,000 limit, and your injuries are $300,000. With standard UIM, your total recovery tops out at $250,000 ($30,000 from them plus $220,000 from your policy). With enhanced UIM, it can reach $280,000 ($30,000 plus your full $250,000).
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Why Contributory Negligence Matters
Maryland is one of the few jurisdictions that still follow pure contributory negligence, along with Alabama, North Carolina, Virginia and, with exceptions for pedestrians and cyclists, the District of Columbia. An injured person who is even slightly at fault generally cannot recover from the other driver. That cuts two ways. When you are clearly at fault, the doctrine offers no defense, and those clear-liability crashes are exactly where your limits get tested. When you are hurt and share any blame, you may collect nothing from the other driver, so your own coverage carries more of the load.
Umbrella Policies Set Your Floor
A personal umbrella sits on top of your auto and home liability and pays after they are exhausted. Every umbrella carrier sets required underlying limits, often around 250/500 on auto, and the exact requirement varies by carrier. If you carry 100/300/100 today, expect to raise your auto limits before an umbrella can be written.
How to Pick Your Limits
- Add up what is at stake: home equity, savings, investments and future income. A household in Potomac or Bethesda with significant home equity is a very different target than a renter with few assets.
- Count the drivers. A newly licensed teen raises the odds of a serious claim, which is when higher limits and an umbrella earn their keep.
- Aim for liability plus umbrella that covers your net worth, and keep UM/UIM matched to liability.
Quote at Matched Limits
A quote at 50/100/50 is not cheaper than one at 250/500/100; it is a different product. When you compare, make sure every quote uses the same liability, UM/UIM and deductibles. The price difference between limit levels varies by carrier and is often smaller than people expect. At our Rockville office, we routinely quote 100/300/100 and 250/500/100 side by side, with and without an umbrella, so you can see the trade-off in real dollars.
This article is general information from a licensed insurance agency, not legal or tax advice. Policy terms and your carrier's decisions control; consult an attorney about your specific situation.
Frequently Asked Questions
How much liability car insurance do I need in Maryland?
The legal minimum is 30/60/15. That is a floor, not a recommendation. Households with home equity, savings or teen drivers often choose 250/500/100 or higher, with matching uninsured/underinsured motorist coverage and a personal umbrella on top. The right limit depends on what you could lose in a lawsuit.
With 100/300/100, if one person's injuries total $600,000, how much do I owe?
The policy pays up to the $100,000 per-person limit for that injured person. The $300,000 per-accident limit does not raise that cap when only one person is hurt. The remaining $500,000 is your personal exposure unless an umbrella policy or other coverage applies.
Is 250/500/100 better than 100/300/100?
250/500/100 raises the per-person cap from $100,000 to $250,000 and the per-accident cap from $300,000 to $500,000. Many umbrella carriers also require underlying auto limits at about that level. Compare quotes at matched limits to see the real price difference.
What is enhanced underinsured motorist coverage in Maryland?
Available on private passenger auto policies issued on or after July 1, 2018, enhanced UIM is coverage you elect in writing. Unlike standard UIM, it is not reduced by the at-fault driver's liability payment, so it is paid on top of what their insurer pays, up to your limit.
Do umbrella policies require minimum auto liability limits?
Yes. Each umbrella carrier sets underlying limits you must carry on your auto and home policies, often around 250/500 on auto. The exact requirement varies by carrier, so set your auto limits and the umbrella together.