Which type of limitation provides a single total for both bodily injury and property damage?

The single limit type of limitation in an insurance policy provides a singular monetary amount that applies to both bodily injury claims and property damage claims resulting from a single incident. This means if an accident occurs, the insured has one combined limit to cover all damages, regardless of whether they relate to bodily injury or property damage.

This format simplifies claims processing since the insured does not need to allocate separate limits to each category of damages. For instance, if the single limit is $300,000, that amount can be used to settle either bodily injury or property damage claims, or a combination of both, as dictated by the circumstances of the incident.

This is in contrast to a split limit, where separate limits exist for bodily injury and property damage. Aggregate limits cap the total amount payable for all claims over a specified period. Layered limits involve multiple layers of coverage often provided by different insurers, which adds complexity. Thus, understanding the characteristics of a single limit helps distinguish its practical benefits compared to other limit types in insurance policies.