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Combined Single Limits

Combined Single Limits

Definition

Combined Single Limits — property policies may have split limits or combined single limits. The combined single limit simply states a single dollar limit that applies to any combination of bodily injury and property damage liability claims, as compared to split limits where three separate dollar amounts apply to each accident: per person limit, per occurrence limit for all injured persons, and per occurrence limit for all property damage resulting from the accident.

Related Terms

Per Person Limit

In liability insurance, the maximum amount the insurer will pay for one person's injuries. If two people are injured in an auto accident and the at-fault driver's policy has a $50,000 per person limit, the insurer will pay no more than $50,000 to each person for his or her injuries. If one person's injuries are worth $25,000 and the other person's are worth $75,000, the first claimant will receive $25,000 and the second will receive the per person maximum of $50,000 from the insurer.

Split Limits

Many auto insurance policies use the split limits approach, which combines the per person and the per occurrence approach. With split limits, three separate dollar amounts apply to each accident.

  • The first limit is a per person limit: the maximum amount that will be paid to any one injured person.
  • The second limit is a per occurrence limit: the maximum amount that will be paid to all injured persons.
  • The third limit is a per occurrence limit that applies to property damage claims; this is the maximum amount that the insurer will pay for damage to other cars or property resulting from the accident.

Per Occurrence Limit

In liability insurance, the maximum amount the insurer will pay for all claims resulting from a single occurrence, no matter how many people are injured, how much property is damaged, or how many different claimants may make claims.

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