Split Limits Coverage
What Does Split Limits Coverage Mean?
Split limits coverage is a type of auto insurance that sets specific payment limits for different categories of claims. It outlines separate limits for three types of coverage: bodily injury per person, bodily injury per accident, and property damage per accident.
Insuranceopedia Explains Split Limits Coverage
To better understand split limits coverage, it’s helpful to compare it with its counterpart: single limit coverage. With single limit coverage, the insurer pays a specified amount regardless of the type of claim—whether it’s property damage or bodily injury. For example, if the insured has $100,000 in coverage, they receive that amount as the maximum payout, no matter the nature of the injury or damage caused by the accident.
In contrast, split limits coverage assigns different coverage limits for each type of claim, such as bodily injury per person, bodily injury per accident, and property damage. These limits are specified in the policy. For instance, if the policy offers $100,000 in total coverage but stipulates $50,000 for bodily injury per person, the insured will receive only that $50,000 for each bodily injury, even though the total coverage is higher.
