Split limit auto insurance coverage is a type of car insurance policy that breaks down your coverage limits into three distinct categories: bodily injury per person, bodily injury per accident, and property damage per accident. Each of these categories has its own specific limit, determining the maximum amount the insurance company will pay for each type of claim. The first part, bodily injury per person, sets a cap on the amount paid for each individual injured in an accident that you cause. The second part, bodily injury per accident, limits the total amount the insurer will pay for all injuries in a single accident. Lastly, property damage per accident sets a limit on the amount paid for damage to property, like other vehicles or buildings, in an accident you’re responsible for.
The limits in a split limit policy are usually expressed in a format like 50/100/50, which is read as $50,000, $100,000, and $50,000, respectively. Here, $50,000 is the limit for each injured person, $100,000 is the total limit for all injuries per accident, and the final $50,000 is the limit for property damage per accident. This structure provides a clear framework for understanding how much coverage is available for different aspects of an accident. It’s a common approach in auto insurance because it allows policyholders to customize their coverage based on their needs and budget. For instance, someone might choose higher limits for bodily injury if they frequently carry passengers, providing more protection in the event of a serious accident.