Definition - What does Split Limit mean?
A split limit policy is one that allocates specific portions of the total amount of coverage to particular risks. The division among the risks is expressed in numbers such as 200/100/50, meaning (in this case) that the limit is $200,000 for one specified risk, $100,000 for a second, and $50,000 for the third.
Insuranceopedia explains Split Limit
Split limit policies are common in vehicular insurance. The total coverage is usually spread across across three risks, often:
- Bodily injury of one person
- Bodily injury of all those involved in the accident
- Property damage
So, if you have a maximum coverage of $350,000 with a split limit is 200/100/50, $200,000 is the maximum amount for one person involved in an accident, $100,000 for all the people involved in an accident, while $50,000 is the limit for property damage caused by an accident.