Split Limit
What Does Split Limit Mean?
A split limit policy divides the total coverage amount into specified limits for different risks. These divisions are represented numerically, such as 200/100/50, which indicates a $200,000 limit for one risk, $100,000 for a second, and $50,000 for a third. Because each number caps what your insurer will pay in that category, choosing the right split has a real effect on your out-of-pocket exposure, and our guide to how much liability insurance you need explains how to size each figure for your situation.
Insuranceopedia Explains Split Limit
Split limit policies are commonly used in vehicle insurance, with total coverage typically divided among three risks:
- Bodily injury to one person
- Bodily injury to all individuals involved in the accident
- Property damage
For example, if a policy has a maximum coverage of $350,000 with a split limit of 200/100/50:
- $200,000 is the maximum payable for bodily injury to one person.
- $100,000 is the maximum for all individuals injured in the accident.
- $50,000 is the limit for property damage caused by the accident.
State minimum split limits are often lower than what drivers actually need to cover a serious accident, which raises the question of whether liability car insurance is enough on its own or whether higher limits and added coverages make more sense.