The term full coverage generally means that the insurance policy has both liability coverage and coverage for damage to your vehicle. The term full coverage does not mean that everything is covered no matter what happens.You should carry as much liability coverage as you can comfortably afford because damage insurance claims today are sometimes settled for millions.
Liability Insurance pays to someone else for Bodily Injury and/or Property Damage which you may have caused them and for which you may be legally liable. The first two (2) numbers referenced above (100/300) are the policy limits of a potential pay-out to cover your Bodily Injury Liability. Your insurance company will pay up to $100,000.00 to any one (1) person and no more than a total of $300,000.00 to three (3) or more people who may have sustained a Bodily Injury in the same covered accident. The last number (50) means that your insurance will pay up to $50,000.00 to the owner of any property you may have damaged and for which you may be legally liable. When a state has a mandatory insurance law, it is Liability Insurance that is being referred to.
"UM" stands for "Uninsured Motorist" Coverage. This will cover you if you sustain a Bodily Injury in an auto accident in which the other party was at fault and the other vehicle was uninsured. Like the "100/300" part of the "Liability" example referenced above, this coverage pays only for Bodily Injury . . . NOT Property Damage. You would be able to collect from your own insurance company what you would have been able to collect from the other driver's insurance company for your Bodily Injury.The numbers "100/300" represent the limits of what the insurance company will pay to any one (1) insured ($100,000.00) or no more than $300,000.00 in total to three (3) or more injured insured.
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