Split Limit
Updated: 03 December 2024
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.
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.
