A split limit liability policy is a car insurance policy that breaks your liability coverage down into three parts: your bodily injury liability limit per person, your bodily injury liability limit per accident, and your property damage liability coverage per accident.
Most car insurance policies are split liability policies, but not every policy offers the same amount of coverage. Drivers can choose as much or as little coverage as they like, ranging from the required state minimum levels of liability to full coverage with half a million dollars in bodily injury coverage per accident.
What does split limit liability mean?
Split liability means your liability coverage is broken down into multiple parts. A split limit policy that covers $50,000 of bodily injury liability coverage per person, $100,000 of bodily injury liability coverage per person, and $25,000 in property damage liability coverage per accident would be written 50/100/25.
Per person limit
The first number in a split limit policy, like the 50 in our 50/100/25 example, is your bodily injury limit per person. This means that the insurance company in this scenario will pay up to $50,000 in medical expenses per person injured in an at-fault accident.
Per accident limit
The second number in a split limit policy, like the 100 in our 50/100/25 example, is your bodily injury liability limit per accident. This means that the insurance company in this example will pay up to a total of $100,000 in medical expenses you cause in an at fault accident.
Your property damage liability coverage, which is the third number in a split limit policy (25 in our example), is also a per accident benefit.
Example of split limit liability
Let’s say a driver who has 50/100/25 levels of liability insurance is at fault in an accident and injures three people. The first person has $32,000 in medical expenses, the second has $45,000 in medical expenses, and the third has $27,000 in medical expenses.
In this scenario, the insurance company would pay the full amount of the first two driver’s medical bills because the total comes to less than $50,000 per person and less than $100,000 total.
The third driver also has less than $50,000 in medical bills, but the insurance company has already paid $77,000 toward medical expenses for the first two injured people, which means the insurance company will pay no more than $23,000 of the third person’s medical expenses, leaving the at-fault driver to pay the $5,000 balance on their own.
Once the per person or per accident limit is met, the insured will be expected to pay out-of-pocket for any additional medical costs caused by the accident, which is why we recommend drivers carry a minimum of 100/300/100 in liability coverage.
Rates for split limit policies
The vast majority of car insurance policies provide split limits for liability coverage, but liability isn’t the only type of car insurance available. Drivers may also need comprehensive insurance, collision insurance, gap coverage, PIP coverage, roadside assistance, or other types of coverage.
The chart below shows the average rates for split limit policies (both full coverage and liability only) by state.
State | Average annual cost for full coverage | Average annual cost for liability only |
|---|---|---|
Alabama | $1,726 | $611 |
Alaska | $1,345 | $433 |
Arizona | $1,565 | $640 |
Arkansas | $1,772 | $524 |
California | $1,857 | $601 |
Colorado | $1,751 | $544 |
Connecticut | $1,790 | $949 |
Delaware | $2,110 | $988 |
District of Columbia | $1,796 | $678 |
Florida | $2,914 | $1,253 |
Georgia | $1,710 | $817 |
Hawaii | $1,200 | $424 |
Idaho | $1,109 | $400 |
Illinois | $1,403 | $558 |
Indiana | $1,219 | $453 |
Iowa | $1,152 | $317 |
Kansas | $1,604 | $493 |
Kentucky | $2,158 | $931 |
Louisiana | $2,906 | $993 |
Maine | $1,147 | $448 |
Maryland | $1,798 | $898 |
Massachusetts | $1,614 | $612 |
Michigan | $2,377 | $888 |
Minnesota | $1,418 | $547 |
Mississippi | $1,674 | $543 |
Missouri | $1,568 | $564 |
Montana | $1,888 | $497 |
Nebraska | $1,735 | $424 |
Nevada | $2,137 | $958 |
New Hampshire | $1,224 | $462 |
New Jersey | $2,259 | $1,154 |
New Mexico | $1,480 | $459 |
New York | $2,172 | $974 |
North Carolina | $1,009 | $423 |
North Dakota | $1,397 | $406 |
Ohio | $1,038 | $386 |
Oklahoma | $1,928 | $496 |
Oregon | $1,461 | $769 |
Pennsylvania | $1,605 | $501 |
Rhode Island | $1,860 | $868 |
South Carolina | $1,864 | $779 |
South Dakota | $1,618 | $339 |
Tennessee | $1,329 | $460 |
Texas | $1,840 | $643 |
Utah | $1,503 | $672 |
Vermont | $1,124 | $380 |
Virginia | $1,314 | $570 |
Washington | $1,651 | $619 |
West Virginia | $1,681 | $626 |
Wisconsin | $1,062 | $348 |
Wyoming | $1,398 | $321 |
What is a combined single limit policy?
A combined single limit car insurance policy rolls all of the parts of your split limit policy into one total limit. For example, a split limit policy that is broken down into 50/100/25 would be the equivalent of a combined single limit policy with a $175,000 limit of liability coverage.
A combined single limit policy has no limits on how your liability coverage can be used. For example, if you drive through the wall of a car dealership, damaging both the building and two new cars being displayed inside, you could easily cause $150,000 in damage. Someone with a split limit policy of 50/100/25 would only have $25,000 in property damage liability coverage, leaving them responsible for paying the rest of the expense out of pocket. But someone with a combined single limit policy of $175,000 would have enough coverage to pay for all the damage.
What is the difference between combined single limit and split limit coverage?
There are several differences between split limit and combined single limit policies. Both policies can offer the same dollar amount for your liability limits, but a split limit policy divides that amount up into multiple parts so the coverage is spread out across bodily injury and property damage claims.
A combined single limit policy has a maximum amount they will pay out in claims, but they don’t limit how you can use those funds, which means you have a lot more flexibility in how your liability claims can be paid.
Outside of that, one of the biggest differences is cost. Split limit policies are often significantly cheaper than combined single limit policies, which is one of the reasons why split limit policies are so much more popular than combined single limit policies.
Frequently asked questions
What is a split risk in insurance?
Split risk means exactly what it says, you are literally splitting a risk. For example, storing property in two different locations is splitting the risk of damage to that property. Split risk usually applies to workers compensation or commercial insurance, not a standard auto insurance policy.
What does it mean if the coverage limits are 250/500?
A policy of 250/500 means you have $250,000 in bodily injury coverage per person and $500,000 in bodily injury coverage per accident. Split limit policies also have a third number that indicates the maximum amount of property damage liability coverage you have per accident.
In the split limit coverage in personal auto policies, which limit indicates the maximum?
Each number in a split limit policy indicates a different maximum. The first number is the maximum amount of bodily injury coverage per person, the second is the maximum amount of bodily injury coverage per accident, and the third is the maximum amount of property damage coverage per accident.
How do I find out what type of car insurance policy I currently have?
The declaration page of your car insurance policy provides your coverage information, including the limits of your liability coverage. If your liability limits are broken into three parts, like 50/100/50, you have split limits. If your liability coverage is listed as a single dollar amount, like $250,000, you have a combined single limit policy.
Methodology
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states, plus Washington, D.C.
For full coverage policies, the following coverage limits were used:
Bodily injury liability: 50/100
Property damage liability: $50,000
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by the state or insurer.
Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year. Rates provided are a sample of insurance costs. Your actual quotes may differ.
