What is Split Limit Car Insurance?

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Have you ever heard of split limit car insurance? If not, you won’t want to miss the rest of this post where we answer “what is split limit car insurance?” and cover other important points about this topic!

What is split limit car insurance?

Split limit refers to the different amounts of liability coverage a policy provider will pay toward different components of a claim when you are at fault. The term “split” refers to how much can be paid for each of the components, rather than the claim as a whole.

There are usually three different components of a claim that can be split:

  • Bodily injury per person
  • Bodily injury per accident
  • Property damage by accident

There are several different ways these can be split. One example would be if you have 100/300/100 split limit coverage. In this case, that would mean you have:

  • $100,000 maximum bodily injury coverage per person
  • $300,000 maximum bodily injury coverage per accident
  • $100,000 maximum property damage limit per accident

When you add those numbers up, does that mean you have $500,000 in claim coverage? No! These limits are split, which means payouts are restricted to each component. For example, if you had $120,000 in bodily injury bills you wanted to claim for one person, but your limit is $100,000, you would still be responsible for the additional $20,000.

Combined single limit coverage

On the other hand combined single limit coverage would mean you have a maximum payout per accident, NOT per injury or per person. So, you may have $300,000 in total coverage, and it could be divided accordingly for bodily injuries per person along with property damage coverage.

Which is right for me?

Combined single limit policies tend to cost more, but they can also provide more extensive coverage and peace of mind. However, for some drivers, a split limit policy makes more sense.

To help you determine what kind of car insurance in Salt Lake City is right for you and your needs, give us a call today to discuss your options!

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SALT LAKE CITY INSURANCE GROUP is your best option for comprehensive and budget-friendly coverage in the area. Our fast and friendly service saves you valuable time and money in finding the coverage you require for your family, your business, and your property. Contact us now to get started.


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