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Q

Please explain the difference between 100/300/50 and 300 combined single limit vehicle liability/property damage insurance? Which provides more protection and why?


A

Combined single limit (CSL) typically gives you more coverage / protection than split limits.

With CSL in your example the auto insurer would combine both Bodily Injury Liability and Property Damage Liability insurance under a single limit. The insurance company would pay up to the stated limit on a third party claim regardless of whether the claim was for Bodily Injury or Property Damage or both.

The difference between a combined single limit policy and a split limit policy is that the split limit requires multiple limitations to the policy while single limit coverage gives you one amount of coverage to use as needed for the expenses resulting from an auto accident.

The split limit has the portions of payment limits already designated while the combined single limit policy can give a policyholder flexibility to use the entire coverage for bodily injury and property damage as it is needed to be allocated between the different expenses.

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So if you purchase a CSL policy and are at fault in an accident you may be better covered for accidents then with a split policy. For example let's look at an example where you are at fault in an accident and then look at it from both a split limit policy of 100/300/50 and a $300K CSL policy.

With the minimum insurance split limits of 100/300/50 if you caused over $50,000 worth of property damage to a vehicle you would usually be personally responsible for an amount over that amount, if you hit multiple cars that limit could easily be reached. So say you caused $65,000 worth of property damage, you are now $15,000 over your PD limit.

If one person was severely hurt by you in the accident and exceeding your $100,000 limit for one person injured in one incident, say by $50,000, than you would now be over your limit in 2 different areas of your split limit policy by a total of $65,000 and be at risk for being sought out to pay personally for this amount.

With a $300,000 Combined Singled Limit insurance policy everything should be covered in the example given above because you can to split the coverage up how you need it. So your PD Liability can pay out $65,000 and your BI Liability can pay out the $150,000 under CSL for a total of $215K paid out and you are still well below your $300,000 combined limit so are better protected.

In states that allow a combined single limit instead of split limits the minimum CSL is normally the Property Damage Liability limit plus the Bodily Injury Liability limit (for two or more people injured in an accident).

For example in Colorado Bodily injury and property damage coverages (liability coverages) can be purchased as split limit coverage or as combined single limit coverage. The minimum limits of Liability required by Colorado law are the 25/50/15, so $25,000 for the injury to or death of any one person; $50,000 for one accident resulting in injury to or death of more than one person; and $15,000 for damage to property. If you choose to purchase the coverage as a combined single limit, the minimum allowable is $65,000.

The availability of these different forms of coverage varies from insurance company to insurance company so if you want to shop around for either split limit or combined single limit Liability coverages for your vehicle click here and get instant car insurance quotes.


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1 Responses to "Please explain the difference between 100/300/50 and 300 combined single limit vehicle liability/property damage insurance? Which provides more protection and why?"
  1. Visitor

    If I was hit from behind and the person that hit me had 100/300 coverage and my doctor bills are $150K, what will I get from their insurance company?

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