Auto Insurance: Split Limits vs. Combined Single Limits
When it comes to auto insurance, understanding your liability limits is crucial for ensuring you're adequately protected. Here, we break down the differences between split limits and combined single limits to help you choose the right coverage.
What Are Split Limits?
Your auto insurance policy may list your liability limits in a format similar to these examples: 50/100/50, 100/300/100, 250/500/100, or 500/500/100.
For instance:
50 (1st number): This indicates a $50,000 limit for each individual injured in an accident.
100 (2nd number): This represents a $100,000 limit for total injuries per accident.
50 (3rd number): This denotes a $50,000 limit for property damage caused during the accident.
What Is a Combined Single Limit (CSL)?
$300,000 CSL per accident.
This means there is a single limit that applies to all damages arising from an accident, encompassing both bodily injury and property damage.
Which Liability Limits Are Right for You?
Your liability limits should align with your net worth, which includes your assets, savings, stocks, equity in your property, and any other financial resources. Here are some guidelines based on household income:
Household Income of $25,000 - $75,000: Consider liability limits of at least 100/300.
Household Income of $75,000 or More: It’s advisable to increase your limits to at least 250/500 or 500/500 and you might want to consider an umbrella policy for additional protection.
If you have young drivers in your household, opting for the highest coverage available is strongly recommended. Inexperienced drivers are statistically more likely to be involved in accidents, so it's vital to ensure your assets are safeguarded.
Conclusion
Ensuring you have adequate coverage is essential. You don’t want to face financial repercussions after an accident due to insufficient insurance. Our team is here to help you assess your needs and determine the coverage that best suits your situation. Reach out to us for personalized assistance today.