Even among experienced insurance personnel I find confusion reigns on the definition and application of the two types of Liability Limits. I see agents warning buyers to Beware of Split Limits, as if we might need to wash our hands after purchase.
I see agents warning buyers to Beware of Split Limits, as if we might need to wash our hands after purchase.
In reality, this fear tactic is unfounded, as either CSL or Split Limits may or may not be the best choice, because it all depends on the actual amount of the limits, not simply how they are applied in a covered loss.
Combined Single Limits i.e. CSL Limits of $50,000 or $100,000 apply to either Bodily Injury OR Property Damage. In other words, the maximum the insurance company will pay for covered damages that have been deemed to have been caused by you, (your fault) is $50,000 or $100,000. The loss can be all Bodily Injury or all Property Damage or any combination of the two, but the maximum amount covered is $50,000 or $100,000 depending on the amount of coverage you decide to purchase.
Split Limits such as $100,000 bodily injury per person/$300,000 bodily injury per accident/$100,000 property...
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