Split Limit
Also known as: Split Limits, Three-Number Limits
The three numbers represent: per-person BI limit / per-accident BI limit / per-accident PD limit. CSL is more flexible because the limit can flex between BI and PD; split limits cap each category separately.
Real-world scenario
Cedar Ridge Landscaping, a six-truck crew operating around Columbus, Ohio, buys a commercial auto policy with split limits written as 100/300/50 — meaning up to $100,000 for bodily injury per person, $300,000 for bodily injury per accident, and $50,000 for property damage per accident. The annual premium runs $6,800, and the physical-damage coverage carries a $1,000 collision deductible on each truck.
One spring morning a Cedar Ridge driver runs a red light and strikes a passenger car carrying two people. The first occupant suffers $180,000 in medical bills and lost wages; the second has injuries totaling $95,000. The other vehicle, a nearly new SUV, is a total loss valued at $60,000. Because the split limit caps bodily injury at $100,000 per person, the insurer pays only $100,000 toward the first claimant even though the loss was $180,000 — leaving an $80,000 gap. The second claimant's $95,000 is paid in full, so total bodily-injury payout is $195,000, comfortably under the $300,000 per-accident ceiling. Property damage, however, is capped at $50,000 against a $60,000 loss, creating another $10,000 shortfall.
The carrier also spends about $22,000 defending the claim (paid outside the limits here). Cedar Ridge is personally on the hook for the combined $90,000 in uncovered damages. Had the owner bought an umbrella policy sitting above the auto limits, that $90,000 would almost certainly have been absorbed for a few hundred dollars more in premium.
How it affects your premium
Split-limit auto pricing turns on how much bodily-injury and property-damage protection you buy and how much exposure your vehicles create on the road. The main cost drivers:
- Chosen limit tier (e.g., 25/50/25 vs. 100/300/50): Higher per-person and per-accident caps raise premium, but the jump from state-minimum limits to 100/300/50 is often far cheaper than the coverage gap it closes.
- Covered auto symbols on the policy: The business auto symbols that determine whether owned, hired, and non-owned vehicles are insured directly change the rated exposure and price.
- Vehicle type, weight, and radius: Heavier trucks and longer operating radius mean more severe potential injuries, pushing the bodily-injury portion of the split limit up in cost.
- Driver records (MVRs): Violations and at-fault losses on driver motor-vehicle reports increase the likelihood of hitting those per-person caps, so carriers surcharge accordingly.
- Uninsured/underinsured motorist add-ons: Matching uninsured motorist limits to your split limit adds premium but protects you when the at-fault party has no coverage.
- Physical-damage coverage and deductibles: Adding collision coverage and lower deductibles raises premium independent of your liability split limit.
- Loss history and industry class: Prior auto claims and a high-risk trade classification both increase the base rate applied to your chosen limits.
Common misconceptions
Myth: A 100/300/50 split limit means I have $300,000 available for any single injured person.
Reality: No — the first number is the hard per-person cap. In a 100/300/50 policy any single claimant collects at most $100,000 for bodily injury; the $300,000 is only the ceiling for all people combined in one accident.
Myth: Split limits and combined single limits are basically the same thing.
Reality: They are structurally different. A combined single limit pools bodily injury and property damage into one flexible bucket, while a split limit rigidly separates them — so a severe single-person injury can exhaust a split limit's per-person cap even when total policy dollars remain unused.
Myth: The per-accident number resets and gives me a fresh limit for property damage too.
Reality: Property damage has its own separate cap in a split limit and does not draw from the bodily-injury figures. If your property-damage limit is exhausted, the bodily-injury per-occurrence amounts cannot be borrowed to cover it.
Frequently asked questions
What do the three numbers in a split limit actually mean?
Is a split limit better or worse than a combined single limit?
Does a split limit cover hired or borrowed vehicles?
What happens if a claim exceeds my split limit?
Are state minimum split limits enough for a business?
Sources cited
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