What does the term "Split Limit" refer to in an insurance context?

The term "Split Limit" in an insurance context specifically refers to the practice of having separate monetary limits for different types of coverage under a liability insurance policy. This means that the insurance policy specifies distinct limits for bodily injury liability and property damage liability.

For example, a policy might have a split limit of $100,000 for bodily injury per person, $300,000 for total bodily injury per accident, and $50,000 for property damage. This setup allows insurance coverage to be tailored to the specific types of risks, ensuring adequate protection for both bodily injury and property loss.

Using separate limits provides clarity in how much the insurer will pay for bodily injury claims versus property damage claims, which is particularly important in automobile liability insurance and similar policies. This structure contrasts with combined single limits, which tend to aggregate the coverage for both types of damages into one lump sum.