Combined Single Limit, Bodily Injury, Property Damage and Split Limit Liability insurance are all types of Automobile Liability insurance available to consumers.
Surround Insurance policies are written as combined single limits (CSL) which we believe offer more advantages than disadvantages to keeping you covered.
How covered are you?
You can find your coverage limits and types in the policy’s exact wording, or on the declaration page at the front of your insurance packet.
Split Limit Liability coverage divides the coverage limits up over 3 areas--one amount for bodily injury per person, one amount for bodily injury for the accident and one limit for property damage for the incident.
By contrast, Surround's combined single limit coverage gives you one amount of coverage to use as needed for the expenses resulting from an accident.
Split Limit Liability Coverage
Split Limit Liability coverage is broken down as a split into something that looks like 20/40/5. This means $20,000 bodily injury coverage per person, $40,000 bodily injury coverage for the entire accident, and $5,000 total property damage limits, which are the state minimum coverages in Massachusetts.
Combined Single Limit Coverage
In contrast, Combined Single Limit Liability insurance is a set number that the insurance company will pay, which includes Liability and Property Damage coverage. For instance, if you chose to carry $100,000 of Combined Single Limit coverage, you would be protected for both Liability and Property Damage coverage up to that $100,000 amount total in a single accident, regardless of how much the Property Damage is, versus the Liability payout.
Advantages and disadvantages of Single Limit Liability coverage
A Single Limit Liability coverage policy has a single "pot" for claims for an accident allowing the insurance company to divide the entire limit amount as needed according to the related claims. For example, if an accident results in a high amount of property damage but very little bodily injury, the bulk of the claims will be dedicated toward property damage claims payouts.
In many cases, carrying a Single Limit Liability coverage policy will actually result in limits that are more than adequate to cover any claims resulting from an accident. This is in contrast to Split Limit Liability coverage, which can result in a gap between actual claims and the coverage’s limits. The result can be a personal injury lawsuit against the policyholder in an attempt to recoup any unpaid expenses, which may place home and business at risk.
If you are at fault in an accident and have Single Limit Liability coverage, you would not be limited by a pre-set damage amount and therefore responsible for paying the difference between what your policy covers and the balance of the claim made by the injured parties. Ultimately, Single Limit coverage can prove to be very cost-effective.
Single Limit Liability coverage is often more expensive than Split Limit coverage because of its simplicity and ease to spread limit around to the different types of loss.
To learn more about our auto coverage, check out the Driving Insurance Overview.