Split Limit

Example

“Her auto policy had split limits of 100/300/50, meaning $100,000 per person for bodily injury, $300,000 total per accident for bodily injury, and $50,000 for property damage.”

Memory Tip

Remember the three numbers like a fraction split three ways: Person/Accident/Property - each gets its own slice of the coverage pie.

Why It Matters

Understanding split limits helps you know exactly how much protection you have in different accident scenarios. If you cause a serious accident with multiple injured people, knowing these limits can help you understand your potential financial exposure beyond what insurance covers.

Common Misconception

People often think the middle number (per-accident bodily injury limit) is additional coverage on top of the per-person limit, but it's actually the maximum total for all bodily injury claims in one accident. If you have 50/100/25 limits and injure three people requiring $50,000 each in medical costs, you'd only have $100,000 total coverage, not $150,000.

In Practice

With 100/300/50 split limits, if you cause an accident injuring two people and damaging property, here's how it works: Person A needs $80,000 in medical care (covered fully), Person B needs $120,000 (you pay $20,000 out of pocket since per-person limit is $100,000), and property damage is $30,000 (covered fully). Your insurance pays $210,000 total, and you're responsible for $20,000 beyond your coverage limits.

Etymology

The term emerged in auto insurance to distinguish from 'combined single limit' policies, emphasizing how the total coverage amount is 'split' or divided among different types of potential claims.

Common Misspellings

Related Terms

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Other insurance terms you should know

See Also