Shall I buy combined single limit auto insurance?


Combined single limit is one option of purchasing auto insurance, along with split-limits liability insurance. But whereas split limits liability coverage allocates three limits specifically for bodily injury per person, bodily injury per accident, and physical damage per accident, combined single limit liability does not differentiate between these three. Instead, one single amount of liability insurance is specified to cover both bodily injury and property damage.

Split Limit vs. Combined Single Limit

We can easily say that combined single limit insurance is the more flexible option of the two since it does not delimit the coverage amount according to different allocations. Instead, a combined single limit includes both damage to personal property and bodily injuries, regardless of the number of persons injured in an accident. Here is how it works:

Before singing the auto insurance agreement, you need to choose the maximum amount of liability coverage. This is an important figure, as it will determine your premiums and the sum which will indemnify the people injured and property damaged in a car accident caused by you.

Unlike the split limit coverage where insureds need to set a concrete amount for injuries per person, per accident and for property damage, combined single limit insurance has one predetermined amount that covers all these. Single limit amount of about $500,000 is a reasonable choice so if yours is less than $300,000, you can raise the limits for a slightly higher premium.

Let us illustrate exactly how single limit coverage works:

You have a Personal Auto policy with a combined single limit of $200,000 and you cause an accident in which one person sustains $150,000 in bodily injuries, your auto policy will cover the expenses, plus any property damages if applicable. However, if three people are involved in an accident in which you are at fault, and they sustain injuries of $100,000 each, you will have to pay an additional $100,000 to cover the costs. 

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