What it means
Liability coverage pays for harm a driver causes to others, and many policies split it into bodily injury and property damage, which the Illinois Department of Insurance describes as often two separate coverages. Bodily injury limits usually have two numbers: the first is the most paid for one injured person in an accident, and the second is the most paid for all injured people in that accident.
Property damage has one limit for each accident. Illinois gives a concrete example, as its guide says state law requires bodily injury limits of at least $25,000 per person and $50,000 per accident, and property damage limits of at least $20,000 per accident.
It also warns that state minimums may not be enough to protect against lawsuits. A split-limit policy can leave gaps, because a severe injury can exceed the per-person limit even when the per-accident limit has room, and property damage can exceed its own limit even when injury limits are untouched.
The alternative is a combined single limit, or CSL, and the New York Department of Financial Services says some insurers offer one overall limit for both bodily injury and property damage instead of separate limits. That single amount is the most the policy pays for the accident.
A CSL is not automatically better, since it may be offered only by some insurers or for some policies, the dollar amount matters, and a small CSL can be lower than the combined split limits a driver could have bought. The minimums differ by place and can change, and a New York Department of Financial Services opinion on CSL policies explains how a combined figure must still make required minimum amounts available for injury to one person, injury to several people and property damage.
Readers should check current local law. The notation can mislead, because a set such as 100/300/50 is not a deductible or a premium and does not mean $450,000 is available for every loss.
Each number applies only to its own category. Higher limits cost more, but they protect against larger claims, and New York's consumer guidance suggests that people with assets to protect should consider higher bodily injury limits, with examples such as $100,000/$300,000 and $250,000/$500,000.
A buyer can compare the extra premium with the exposure.
In practice
Real-world examples.
Example
A fictional driver buys 100/300/50 limits. The policy pays up to 100,000 for any one injured person, 300,000 for all injured people in one accident and 50,000 for property damage. The driver reads each number as a separate cap.
Example
A fictional crash injures two people, with medical claims of 90,000 and 80,000, and damages property worth 60,000. A 100/300/50 policy pays the injury claims in full but stops at 50,000 for property. The remaining 10,000 is not covered by that limit.
Example
A fictional driver compares the same 100/300/50 policy with a 300,000 CSL. The CSL can pay the injury and property claims from one pool. The driver still checks whether the policy and insurer offer it.
Formula
Calculation
Paid claim = the smaller of the loss and the applicable limit. For the fictional 100/300/50 policy, injuries of 90,000 and 80,000 are paid in full because each is below 100,000 and the total of 170,000 is below 300,000.
Property damage of 60,000 pays 50,000, leaving 10,000 above the limit. A 300,000 CSL would cover 230,000 of total claims in the same illustration. These are example figures, not advice on how much coverage to buy.Case study
Seen in the real world.
This case study is fictional and illustrative. A family renewing auto insurance sees limits written as 50/100/25. The household owns a house and savings, and the driver commutes daily. The agent explains that 50 is the most for one injured person, 100 for all injured people, and 25 for property.
The driver compares quotes for higher limits and a CSL, and asks whether an umbrella or excess policy is available. The family chooses higher split limits because the price difference is modest. They keep the policy summary and check it again when they buy another car. The decision rests on actual limits, local minimums and the quote.
Watch out
Common mistakes.
- Reading 100/300/50 as one 450 pool.
- Choosing minimum limits without checking the risk of lawsuits.
- Assuming a combined single limit is available or cheaper everywhere.
Questions
People also ask.
What do the three numbers mean?
Usually bodily injury per person, bodily injury per accident and property damage per accident.
Are state minimums enough?
Not always. The Illinois guide notes they may not fully protect against lawsuits.
What is a combined single limit?
One overall limit for bodily injury and property damage instead of separate caps.
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