How Does Combined Single Limit Liability Differ From Split Limit Liability Coverage

June 25, 2013

Combined single limit, bodily injury, property damage and split limit liability insurance are all types of liability insurance available to consumers. It is important to realize that liability insurance is the minimum required insurance in most states. It is there to protect you from lawsuits that can come from injuries to others involved in the crash. You will not receive any insurance compensation in an accident that you are liable for.

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Learn What Type You Have

If you do not already realize what type of liability insurance you currently have you should go over your insurance papers to find out. You will be able to find this in the exact wording of the insurance policy, or it will be stated on the declaration page at the front or you insurance packet. There you will also see what your coverages are per each type.

Split Limit Liability Coverage

A standard split limit liability coverage is broken down as a 100/300/50 split. This means that $100,000 is for each person, $300,000 for each accident, and up to $50,000 for any property damages.

Combined Single Limit Coverage

In the most simplest of terms, this type of auto insurance coverage is a combination of all the limits so that you receive the most complete liability coverage you can. There is not split differential between the three main components of personal injury, accident damage, or personal property damage. A combined single limit is exactly what the name implies; it is combined into one single limit.

Combined vs. Split

When you have an accident you are going to be given the exact limit that you policy states. For example, if you have an accident and have a standard 100/300/50 split you might not be covered fully. Let's assume that your accident caused $225,000 in damages and injury. You would think that the $300,000 total accident limit would cover, but it falls short. If two people were injured with $165,000 of injuries (one at $15,000, and the other at $150,000), coupled with $60,000 in physical damages, you would still be liable for $60,000 in payments. This is because the sub-limits of $100,000 medical and $50,000 for property have been surpassed.

Combined Single Limit Supersedes Sub-Limits

If you have that same accident with a combined single limit insurance policy, then you would be fully protected. This is because your total limit is $300,000. There are no differentials in what is paid out to what. The entire cost of all the injuries and damages are combined together to make one single payout. This supersedes any type of individual limits.

Different Scenarios Offer Different Results

A combined single limit auto insurance coverage is the better choice for liability insurance. However, there are certain circumstances where a split limit liability policy will be better served. In the end, it comes down to how much you are willing to pay for the insurance. While the combined is a little more expensive, you might be better served to purchase that instead. In the end, you should take a look at your current insurance policy to see what type you currently have and possibly upgrade if possible.