Wang Insurance


What are split limits vs. combined single limits?


What are split limits?

If you look at your auto insurance policy, your liability limits most likely look like one of these four choices:

Bodily Injury
Liability Coverage
Property Damage
Liability Coverage
Each Person / Each Accident
Each Accident
$50,000 / $100,000
$100,000 / $300,000
$250,000 / $500,000
$500,000 / $500,000

In example 1:

  • 50 (1st number) is a $50,000 payment limit for each person injured

  • 100 (2nd number) is a $100,000 payment limit for each accident

  • 50 (3rd number) is a $50,000 payment limit for property damage caused during an accident

What is a combined single limit?

A combined single limit will look like this:

  • $300,000 CSL each accident

It provides a one limit cap over an entire auto accident.

What liability limits are right for me?

Your liability limits should be in line with your net worth (this includes your assets, savings, stocks, equity in your property, and anything else you can add in).

  • If you or your household makes $25k-75k per year, you should consider getting limits of at least 100/300.

  • If you or your household makes $75k or more per year, you should consider increasing those limits to at least 250/500 (and possibly getting an umbrella policy above that).

  • If you have children who drive, it's suggested to purchase the most extensive coverage available. Young drivers lack experience, which means they're more likely to be involved in an accident. You want to make sure your assets are protected.

You always want to make sure you're adequately protected. You never want to have to pay with your own money after an accident.