combined single limit This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you Split Limit vs Single Limit (Auto Insurance). Following along are instructions in the video below:
“This video. We re gonna discuss the difference between a split limit in a single single limit in terms of a car insurance policy so a split limit is when take the bodily injury coverage in the property damage coverage and you actually state those separately so the way you would see it if you were looking at an insurance policy. You might see something like the following twenty five fifty ten. And what that means is this first number the twenty five is the amount of bodily injury insurance that the insurance company would pay out as a maximum per person okay.
But the fifty is the cap that the insurance company would pay out per accident. So if you have a car accident. The insurance company would pay up to twenty five thousand dollars of damages that you do to a person per person. But it s capped at a total of fifty thousand per accident now what we ll get to that a little bit when we do our example so the property damage is actually going to be capped at ten thousand.
So we see that the broad ollie injury and property damage. It s not just one big number of a hundred thousand or something in terms of coverage. It s actually different depending on each rights the property damage is ten thousand bodily injury per person is twenty five thousand that s what we call a split limit because we have these these limits for the insurance that are broken out separately when we have a single limit policy. What we have is the bodily injury and the property damage.
They re all just gonna be lumped together so for example. We just say look we have a single limit of sixty thousand dollars. And what s that saying is that the insurance company will pay out no more than sixty thousand dollars in total amount of money to people who are harmed from bodily injury or their car is harmed the property damage and so forth just lump. All the costs together and the insurance company will pay out no more than sixty thousand dollars.
So let s walk through a comparison. It might make it a little easier to understand so let s say that you cause an accident that has the following damages so you hurt tom tom has bodily injury damages of forty thousand dollars and let s say medical bills or something jane has five thousand dollars in damages that you do you re liable for and then you also did three thousand dollars and images to jane s car. So now we re trying to figure out how things would how the insurance company would pay out under a split limit and also under a single limit now i had to make some assumptions of what is your split limit. What is your single limit.
So just use the same numbers from above that we use in our examples. So. Let s say our split limit is. 25.
50 10 and our single limit is. 60000. And now we want to calculate what the insurance payouts would be given the damages that we have above plus. These limits that we just discussed so let s do the split limit first so with tom it s got 40000 in actual damages.
But you see that there s a 25 thousand dollar limit per person okay so tom is at. 40000 so he s only going to get 25000. Though in terms of damages. Because of that per person.
Limit the insurance company will pay out no more than 25000 in bodily injury damages to any particular person from an accident so tom s injuries could have been a million. Dollars and it would still be 25000. That s capped out with the split limit jane has five thousand dollars in damages. So she doesn t meet that 25 thousand dollar limit.
But now we have to look at the middle number that 50 that s the total battery bodily injury that the insurance company will pay out no matter how many people get injured you add it all. Up it has to be less than 50000. So let s add these two we have twenty five thousand and five thousand that gives us 30 thousand and since 30 is less than fifty. We don t have a problem here right so we don t have any kind of issue.
Now we look at jane s car well the property damage limit is ten thousand dollars under the split limit jane s car. We did three thousand dollars in damages. So there s not an issue there so there s gonna be a payout of three thousand dollars for jane s. Car.
So if we add all those. Together we have 25000. Plus. Five thousand plus.
Three thousand is gonna give us thirty three thousand dollars. That the insurance company is going to pay out under this split limit with these assumptions. Now let s look at the single limit. Well.
The single limit is actually pretty easy so all we do is just remember we just lump the bodily injury the property don t we just lump it all together so tom had 40000 and damages jane had 5000 in damages and the car had 3000 and damages now we add all these together and see if it s. Less than 60000 so this. Is 40000. Plus.
5000. Plus. 3000 that is going to give us 48000. Now we compare that to our single limit max.
This is our cap this the most that the insurance company will pay out per. Accident is 60000. Under this single limit and we have 48 thousand dollars in damages that we caused so the insurance company under the single limit of. 60000 will end up paying out 40000.
48. Thousand dollars in. Damages. Whereas under the split.
Limit it s only going to pay out 33000. In damages. Because with our particular split limit we have that limit on tom s damages of. 25000 when in reality he have 40000.
So that doesn t mean that tom s necessarily out of luck of course that 15000. That the tom got shortchanged tom could potentially sue you and say look i want to come after your. Assets and so forth to get you to pay the additional 15000. That difference between the 33 thousand and the 48 right so tom could come after you for those additional 50 that additional 15000.
And you might be forced to pay. ” ..
Thank you for watching all the articles on the topic Split Limit vs Single Limit (Auto Insurance). All shares of newyorkcityvoices.org are very good. We hope you are satisfied with the article. For any questions, please leave a comment below. Hopefully you guys support our website even more.