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tip
#1
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When your Personal Auto Policy says you have split limits
of liability, that means there are separate monetary limits under your
policy for liability versus one total limit that will be aplied in the
event of a liability loss. One overall limit would be a single limit of
liability and may show on your policy as, for example: $50,000 Combined
Limit for Bodily Injury and Property Damage. If it is a split limit, it
would show up writen as, for example: $25,000/$50,000/$25,000. The limits
are always listed in this order:
Bodily Injury Per Person Limit/Bodily Injury Per Accident
Limit/Property Damage Per Accident Limit
***These limits ARE THE MOST the policy is going to pay
per limit.
Using the above example, if you are in an accident and
the injured person sues you for 1) Injury to the driver/owner at $10,000
and 2) Injury to the passenger $40,000 and 3) damage to their car $7,000.
(Total=$57,000)The payouts from your policy (if all is covered loss) would
be as follows:
Under the $50,000 Combined Limit = $50,000 paid out
because that is your total limit, you would be responsible on your own
for the remaining $7,000.
Under the $25,000/$50,000/$25,000 Split Limit=$42,000
paid out
and you would be responsible for the $15,000 remaining. This is because
EVEN THOUGH you have $50,000 total applicable for Bodily Injury, you have
the $25,000 per person limit; therefore, of the $40,000 for the passenger,
only $25,000 would be covered, leaving you with $15,000 uncovered.
This is just an example, discuss with your agent which
(combined or split limits) would be best for your situation. There are
many monetary limits available to purchase, not just the ones used in
the examples above.
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