What is a Combined Single Limit Insurance Policy? How Is It Different from Split Limit Policy?

What Are Combined Single Limits?

Combined Single Limits (CSL) are provisions of an insurance policy that limits the coverage for all aspects for a claim to a single dollar amount. A CSL policy will payout up to the limit amount to cover other people’s injury and any property damage that may have occurred.

How Single Combined Limits Work

Combined single limits are designed to be a large bucket of funds that are used where it’s actually needed. Just like most policies, once the limit dollar amount has been reached, the insurance company stops paying. 

For example, the policy could state that the insurance company will pay up to $300,000 for a single incident. This is regardless of how that money gets used for the claim. This becomes very helpful in situations where an accident didn’t cause any serious injuries, but instead caused significant damage to vehicles or buildings. The policy could spend the little amount that was needed for the injuries and then use a larger portion for the property damage.

Combined single limit policies work really well with umbrella insurance to add even more coverage and peace of mind when you’re on the road!

Combined Single Limit vs. Split Limits

Split limit is the opposite of a combined single limit and has different dollar amounts assigned to different aspects of an incident. For example, if split limit policy has 50/100/50 coverage:

• $50,000 – Covers another person’s injury (per person)
• $100,000 – Total limit for everyone else’s injuries for each incident
• $50,000 – Covers property damage i.e., other people’s cars or buildings

Advantages to Single Combined Limits

A CSL policy definitely has its advantages, especially if you’re a homeowner, own multiple vehicles or have additional assets to protect. CSL policies offer broader coverage, which is why the premium is usually higher than a split limit policy.

• Allows more freedom to cover greater specific costs of an incident and reduces the risks of paying money out of pocket to cover a claim.
• Peace of mind! If you have a $300,000 CSL policy, you know you’ll be covered for up to that specific amount. You don’t have to try and remember how much is covered for a specific part of the accident.
• Generally, when you have a higher CSL policy, you’ll receive an even greater discount on their umbrella insurance.

Take Aways:

• Single combined limits offer you wider coverage in an accident and uses the limit amount much more effectively.
• More peace of mind with your coverages and greater discounts will umbrella policies.
• You will usually pay higher premiums for this broader coverage. If you are still building your up your assets, the higher premiums may not justify the price just yet.

It’s important to have an insurance advisor to be able to ask these types of questions. If you’re looking for a fresh and engaging insurance experience, visit the group at Northtown Insurance for all your insurance questions and needs!