Auto insurance policies can be complicated, with many different types of coverage and limits to sift through. However, even if you’re new to the world of car insurance, you’ve probably heard of split limits and combined single limits. These are two common ways of structuring liability coverage in car insurance policies, and they have some important differences that can affect the level of protection you receive on the road. In this article, we’ll take a closer look at what split limits and combined single limits are and explore how they differ.
First, let’s define what we mean by auto liability insurance coverage in an auto policy. Liability coverage is the part of the policy that pays for damages or injuries you cause to others in an accident. Every state requires drivers to carry a minimum amount of liability coverage, but many people choose to carry more than the minimum to ensure they have adequate protection in case of an accident.
Auto LIABILITY INSURANCE SPLIT LIMITS
A split limit policy is one in which liability coverage is broken down into three separate limits:
- Bodily injury per person: This is the maximum amount your policy will pay for injuries you cause to a single person in an accident.
- Bodily injury per accident: This is the total amount your policy will pay for all injuries you cause in an accident.
- Property damage: This is the maximum amount your policy will pay for damage you cause to someone else’s property, such as their car or a building.
For example, if you have a policy with split limits of $100,000/$300,000/$100,000, this means that:
- Your policy will pay up to $100,000 in medical expenses for each person injured in an accident you cause.
- Your policy will pay up to $300,000 total for all injuries in an accident you cause.
- Your policy will pay up to $100,000 for any property damage you cause.
The benefit of a split limit policy is that you can choose different limits for each type of coverage, so you can customize your policy to meet your specific needs. However, one downside to split limits is that if you cause a serious accident that results in multiple injuries, the per-accident limit may not be enough to cover all the expenses. This can leave you personally responsible for any costs beyond your policy limits.
Auto LIABILITY insurance combined siNGle limits
A combined single limit policy is one in which liability coverage is not broken down into separate limits. Instead, you have a single limit that applies to all types of liability coverage. For example, if you have a policy with a $500,000 combined single limit, this means that your policy will pay up to $500,000 total for all injuries and property damage you cause in an accident.
The benefit of a combined single limit policy is that there is no need to worry about having different limits for different types of coverage. You have one limit that applies to everything, which can simplify your insurance coverage. However, one downside to a combined single limit is that if you cause an accident that results in both property damage and injuries, the limit may not be enough to cover all the expenses. This can leave you personally responsible for any costs beyond your policy limit.
In summary, split limits and combined single limits are two different ways of structuring liability coverage in an auto insurance policy. Split limits break down liability coverage into separate limits for bodily injury per person, bodily injury per accident, and property damage. Combined single limits provide a single limit for all types of liability coverage. Both types of coverage have their own advantages and disadvantages, so it’s important to choose the type of coverage that best fits your needs and budget.
A.N Nunes Agency
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There is a difference. To find out how our independent insurance agency can help you find the right insurance coverage, please contact one of our agents today. Give us a call at 401-253-5300