What is Split Limit Auto Insurance And How Does it Work?

When shopping for auto insurance, you’ll often come across confusing terms like split limits and combined single limits. These terms describe how your policy divides coverage in case of an accident — and knowing the difference can save you thousands of dollars when the unexpected happens.

Split-limit auto insurance defines how much your insurer will pay for bodily injuries and property damage if you’re at fault in a crash. Each part of the split corresponds to a specific coverage category, so it’s worth understanding what each number means before you sign your policy.

In this guide, we’ll break down split-limit coverage, how it compares to combined single-limit policies, and how to determine the right amount of protection for your situation.

What Is Split Limit Auto Insurance?

Split-limit auto insurance applies to your liability coverage, which pays for injuries or property damage you cause to others in an accident. Every state sets minimum coverage requirements, but those minimums often don’t fully protect drivers from large claims.

A split-limit policy divides your liability coverage into three distinct parts — typically written as three numbers like 100/300/50. Each number represents the maximum your insurer will pay for:

Bodily injury per person – the maximum amount your insurance will pay for injuries to one person.
Bodily injury per accident – the total maximum amount your insurance will pay for injuries to multiple people in one accident.
Property damage per accident – the maximum amount your insurance will pay for damage to another person’s vehicle or property.

Let’s explore how these limits actually work.

Breaking Down a Split-Limit Example

Imagine you purchase a 100/300/50 policy. Here’s what that means:

$100,000 bodily injury per person – Covers medical costs for each individual injured in an accident you caused, up to $100,000 per person.
$300,000 bodily injury per accident – Covers total medical expenses for everyone involved, up to $300,000 combined.
$50,000 property damage per accident – Covers damage to vehicles, fences, buildings, or other property up to $50,000.

It’s important to note that these amounts don’t stack together — they apply separately depending on the type of damage. Let’s look at a few examples to make this clear.

Real-World Scenarios: How Split Limits Work

Scenario 1: Covered Within Limits

Three passengers in the other car each sustain $90,000 in injuries. Since the per-person limit is $100,000, and the total ($270,000) is under the per-accident limit of $300,000, all claims are covered.

Scenario 2: Exceeding the Per-Person Limit

Two people are injured, and each files a claim for $120,000. Even though the total ($240,000) is under the $300,000 accident cap, each individual’s claim exceeds the $100,000 per-person limit — meaning you’d personally owe the $20,000 difference for each injured person.

Scenario 3: Exceeding the Per-Accident Limit

Four passengers have injuries totaling $320,000. Although each claim is under $100,000, the total exceeds the $300,000 per-accident limit, so the insurer will only pay up to $300,000 combined. You’d be responsible for the remaining $20,000.

These scenarios show why understanding both limits is crucial. Many drivers assume they’re covered for the total combined amount (in this case, $450,000), but that’s not how split limits work.

Why Split Limits Matter

Split-limit coverage gives insurers more control over payouts, which helps them manage risk — but it can also leave you exposed if your limits are too low.

Here’s why it matters:

Medical costs can escalate quickly. Even a moderate accident can lead to hospital bills that exceed your per-person or per-accident limits.
Property damage adds up. Repairing or replacing a high-end vehicle can easily surpass $50,000.
You could be personally liable. Any expenses beyond your policy limits must be paid out of pocket — and that can put your savings or assets at risk.

If you own property or have significant assets, it’s worth considering higher split limits or even exploring a combined single-limit policy for broader protection.

Combined Single Limit vs. Split Limit Policies

Now that you understand how split limits work, let’s compare them to combined single-limit (CSL) coverage.

What Is Combined Single Limit Coverage?

With a combined single-limit policy, your insurer sets one total payout limit for all liability costs — whether that’s bodily injury or property damage. For example, if your CSL policy has a limit of $300,000, the insurer will pay up to that amount for all claims combined.

That means:

You have more flexibility in how the coverage is applied.
There’s no per-person or per-accident division — it’s a single pool of money.

For instance, if one person’s injuries total $200,000 and property damage adds up to $100,000, you’d still be covered under a $300,000 CSL policy. With a split limit, you might hit the per-person cap and have to cover the rest yourself.

Who Benefits from a Combined Single Limit?

Drivers who own homes, businesses, or other valuable assets often choose CSL coverage because it provides simpler, broader protection. It can also act as a safeguard against lawsuits, covering a wider range of claim distributions.

However, combined single-limit policies usually come with higher premiums. For many drivers, the lower cost of split-limit coverage makes it more practical — especially if they don’t have major assets at risk.

How to Choose the Right Coverage for You

Selecting the right liability coverage depends on your financial situation, risk tolerance, and state requirements.

Here are a few key tips:

Start with your state’s minimums — then go higher.
Minimum liability limits are often too low to cover real-world expenses. For instance, if your state requires only 25/50/10 coverage, a serious accident could easily exceed those limits.
Consider your personal assets.
If you own a home, multiple vehicles, or investments, choose higher coverage limits (like 100/300/100) to protect yourself from out-of-pocket losses.
Balance cost and coverage.
While higher limits mean higher premiums, the extra protection can save you thousands in the event of a lawsuit or major accident.
Ask about umbrella policies.
An umbrella policy can extend your liability protection beyond your auto policy, offering peace of mind for a relatively low cost.

For more detailed comparisons, explore your options with trusted providers through JNA’s auto insurance partners.

Common Myths About Split Limit Auto Insurance

Myth 1: The total of all three limits equals my total coverage.

Not true. Each number applies separately, so the limits cannot be added together. You might have unused coverage in one area while exceeding another.

Myth 2: State minimum coverage is enough.

Minimum coverage only protects you up to small amounts. Medical and repair costs today can easily exceed those limits, leaving you with significant personal liability.

Myth 3: Combined single-limit policies are always better.

While CSL coverage is more flexible, it isn’t always the most cost-effective. For many drivers, a well-balanced split-limit policy offers sufficient protection at a lower premium.

Final Thoughts: Make Sure You’re Protected

Understanding split-limit auto insurance helps you make smarter decisions about your policy. The right coverage level depends on your financial situation and comfort with risk — but knowing how those three numbers work is the key to avoiding costly surprises.

When comparing quotes, look beyond the price. Make sure your coverage limits provide real protection in the event of serious injury or property damage. Whether you choose a split limit or a combined single limit, being well-informed ensures you’re covered when it matters most.

Ready to review your policy options?
Get a free quote today and find coverage that fits your needs and budget.