Auto insurance policies have coverage limits like any other type of insurance policy. In this case, we have two options: a split limit policy or a combined single limit or a CSL auto policy. Before purchasing an auto insurance policy, we should know what CSL means in insurance and what Split Limit means to make the right choice.
Both types of policies provide coverage for bodily injury and property damage. Bodily injury is when we are at fault in an automobile accident, and one or more people are injured. Property damage coverage includes damage to an automobile, fence, house, or building affected by an automobile accident.
How does split-limit liability insurance work?
This policy has a specific coverage limit for each type of damage caused in an accident. A bodily injury amount for each accident victim, a limit for accident injuries, and a limit for property damage coverage. In this type of policy, we cannot exceed the amount of each type of damage and remember that bodily injury is divided into a limit for each person and the total accident.
We will see the limits divided by each type of damage, for example, $50,000/$100,000/$25,000. This means that there is a $50,000 limit for bodily injury per person, a $100,000 limit for bodily injury per accident and a $25,000 limit for property damage.
What is a combined single limit insurance policy?
When our auto insurance policy has a combined single limit, the limit of coverage will pay for both bodily injury and property damage. In other words, there is no differentiation between each person’s bodily injury or property damage claims. All claims are paid with the same coverage limit up to the maximum amount stated in the policy.
These policies generally have a coverage limit of between $500,000 and $1M, although they may have less coverage for damage to personal vehicles. However, it is important to consider that these policies may have a per occurrence or within the policy’s term. The insurance will cover expenses up to the agreed amount for each accident by occurrence. If the application is made within the term of the policy, the amount will be for all the automobile accidents that we may have during the term of the insurance policy.
Advantages of insurance with CSL
- Higher coverage limit: Combined single limit insurance policies generally offer higher total coverage than split limit policies since all claims are paid similarly. This is also because they are especially suited for commercial automobiles.
- Flexibility: If we are at fault in an automobile accident, the combined single limit policy allows us to use the coverage flexibly without limiting each type of damage.
- Claims process: Because there are no limits per type of damage, the claims process is much simpler with this type of policy. Although the process is similar to other types of insurance, these cases are approved quickly as long as they are within the coverage limit.
Who needs a combined single limit policy?
This type of insurance is ideal for those seeking comprehensive auto insurance coverage because these policies offer better coverage for high-value personal and business assets. In addition, not having limits for each type of damage allows the claims process to be simpler and pay out more quickly.
However, we should know that these insurance policies are difficult to find; few companies offer CSL for personal automobiles. It is much easier to find the policy with CSL for commercial automobiles, especially for trucks and very large vehicles that can cause a lot of damage if they get into an accident.
Finally, it is important to remember that these auto insurance policies are much more expensive than split limit policies because they provide much broader coverage.