Combined Single Limit vs. Split Limit

Combined Single Limit vs. Split Limit: What's the Difference?

The difference between a combined single limit policy and a split limit policy is simply this: combined single limit coverage gives you one single amount of coverage to use as needed; split limit coverage splits the coverage amount. That is, combined single limit coverage affords the flexibility to use the entire coverage amount for everything, including bodily injury and property damage. Split limit coverage designates and apportions how much protection you have for bodily injury and/or property damage. Both types of coverage offer policyholders good protection, as long as the coverage limits are adequate.

How Much Is Enough?

If you have single limit coverage, Amica recommends at least $300,000 of coverage. A single limit refers to a single figure, such as $300,000, that can be divided in any combination. Split limits, on the other hand, break down the maximum coverage per person and per accident for bodily injury with a separate component for property damage. Usually, a split limit policy is quoted in three numbers. Amica recommends at least $300/$300/$100, which would cap the coverage as follows: bodily injury at $300,000 per person/$300,000 per accident/ $100,000 for property damage.

The Property Damage Factor

An important factor to consider with split limits is property damage liability, which represents the third part of a split limit policy. Property damage usually means damage to the other driver's vehicle. In many companies, a typical property damage amount with split limits is $25,000 or $50,000. The risk in carrying such a low amount is this: If you cause a multiple-car accident and there are a number of expensive vehicles involved, you could easily exceed a $25,000 or $50,000 limit several times over. If you are carrying split limit coverage, Amica recommends a property damage amount of at least $100,000 in view of inflation and recent court settlements. Of course, consideration may be given to carrying even more coverage than $100,000.

If you have a combined single limit in the above scenario, the $300,000 figure could also be used to pay for property damage.

In some states, regulation or insurance law mandate split limits. In these states, Amica does not offer a combined single limit policy and strongly recommends policyholders choose at least $300/$300/$100 of coverage limits. As always, if you have questions about single versus split limits or any other aspect of your automobile coverage, please call Amica at 1-800-242-6422 or send us an E-mail.