Split Limit


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.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.