Split Limit (2024)

FAQs

How do you calculate split limits? ›

Insurers typically offer a variety of liability limits for you to choose from. A commonly available choice of limits is $25,000/$50,000/$25,000, or 25/50/25. The three numbers represent the maximum amount your insurance will pay for bodily injury and property damage you cause.

CSL is preferred for drivers who have high net worth, own a business, or have assets that they want to protect. Split limit coverage is preferred for drivers who want to save on their insurance premiums but still have adequate coverage.

For example, a split limit policy may impose limits like 100/300/50. This means the policy pays $100,000 per person per incident for bodily injury, with a maximum of $300,000 per incident. The limit for property damage per incident, meanwhile, would be $50,000 under this policy.

In a 25/50/25 policy, your insurance company will pay a maximum of $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $25,000 in property damage liability coverage for an at-fault accident.

The combined single limit refers to a maximum amount of money that's paid out for claims that involve all aspects of bodily injury and property damage. The limit would cover all people involved in the accident or the claim (other than the insured). The maximum amount of coverage would be split between those injured.

A 500/500 car insurance policy means it covers up to $500,000 per person and $500,000 per accident for bodily injury liability.

If you carry auto insurance with liability coverage limits of $50,000/$100,000/$30,000, those numbers are broken down as follows: $50,000: The maximum amount your insurer will pay for bodily injuries per person. $100,000: The total amount your insurer will pay for bodily injuries per accident.

The two separate parts of the function can be solved for the limit and those limits can be divided separately, if the limit of the denominator does not equal zero.

What is the 50 in a 50 100 25 split limit policy? ›

Split liability means your liability coverage is broken down into multiple parts. A split limit policy that covers $50,000 of bodily injury liability coverage per person, $100,000 of bodily injury liability coverage per person, and $25,000 in property damage liability coverage per accident would be written 50/100/25.

Insurance companies set prices to match the cost of future claims. To do this, insurance companies look at your personal risk factors (the type of car you drive or where you live). But they also look at how much they spend on all claims.

The third number is the property damage liability limit, which would repair or replace the car of anyone you hit. 50/100/50: This level of coverage is recommended for those who have an older car, few assets, don't drive much and are on a tight budget, for instance college students and retirees who are downsizing.

For example, if you have a health insurance policy with a $1,000 deductible and you receive a medical bill for $2,000, you would be responsible for paying the first $1,000 and your insurance would cover the remaining $1,000.

As we also learned, the addition rule for limits tells us that we can split larger functions that are the sum of smaller functions into the smaller functions and take the limit of each of those functions to find the limit of the larger function.

BY Carly Plemons Published on April 29, 2024

Once you max out your deductible, you pay a copayment or coinsurance for services covered by your healthcare policy, and the insurance company pays for the rest. As a general rule, the higher the deductible, the lower your premium, and vice-versa.