What is a Combined Single Limit?

When buying auto insurance, you’ll work with your carrier to choose your policy’s liability coverage limits. These numbers often specify how much an insurer will pay per person and per accident for bodily injuries and property damage. This is called split limit coverage.

Another available option is combined single limit (CSL) coverage. These CSL policies offer simplified coverage with a single limit that includes both bodily injury and property damage liability for any accident. Here’s a look at what combined single limit auto insurance is, how it differs from split-limit coverage and how to choose the right one for you.

What is combined single limit (CSL) insurance?

Combined single limit (CSL) insurance is a type of auto policy that offers one single coverage limit for liability, rather than splitting this coverage into different categories. Not only does this simplify insurance coverage for the policyholder, but can help ensure that your policy’s liability limits provide coverage where it’s needed most after an accident. 

Combined single limit vs. split limit

Many traditional auto insurance policies have split limit coverage. With these policies, you’ll have different coverage limits for bodily injury liability per person and per accident, as well as a limit for property damage liability. While you can choose your preferred limits when building the policy (as long as they meet or exceed your state’s minimum coverage requirements), these individual limits will dictate the maximum that another individual would receive for their injuries or damages. 

For example, a potential split coverage policy might have “25/50/25” limits, which offers $25,000 per person in bodily injury coverage, up to $50,000 per accident in bodily injury and up to $25,000 in property damage. A comparable CSL policy, on the other hand, might have a consolidated coverage limit of $100,000 in total liability.

How does CSL insurance work?

A combined single limit policy offers more flexible and adaptable coverage in certain situations. With this, your carrier can use your single limit to cover a range of liability damages after a claim, rather than disbursing coverage in different categories.

Here’s an example showing how CSL insurance works:

• You’re involved in an at-fault accident where you hit someone else’s car. 
• In that vehicle is a driver and a passenger, both of whom complain of injuries; their medical expenses add up to $19,000 and $14,000.
• The vehicle you hit is totaled, and had a fair market value of $42,000 at the time of the crash.

Let’s say you have a state-minimum policy with 25/50/25 split limits. In this case, even though your policy is technically offering up to $100,000 in total liability protection, you don’t have enough coverage to pay for the other driver’s property damages (as the property damage liability portion of your policy caps out at $25,000). The other driver could be forced to sue you to recoup the difference and replace their vehicle, which you may have to cover out of pocket.

If you have a $100,000 combined single limit insurance policy instead, you are better protected in this specific example. While your total coverage remains the same, the entire limit could be disbursed for both property damages and bodily injuries. Your carrier would cover the $42,000 vehicle value as well as the $33,000 in total medical bills without exceeding your limit or opening you up to litigation.

Pros and cons of CSL insurance

Advantages of CSL insurance

There are a few key benefits to purchasing combined single limit coverage over a split-limit policy.

• The policy is simplified. It can be easier to understand how you’re protected with a combined limit policy, since it has just one dollar amount to choose versus calculating your split needs. 
• Coverage is flexible. Each accident is different, with injuries sometimes disproportionately exceeding property damages (or vice versa). With a combined limit policy, you’re protected with the same total limit no matter how your liability is categorized.
• Comprehensive coverage extends to larger claims. With a combined single limit, you don’t have to worry about individual liability categories exceeding your coverage limits and exposing you to a lawsuit. Instead, you just have to be sure to buy enough combined limit protection that you’re covered for both bodily injury and property damage liability, even if you’re involved in a large liability claim accident. 

Disadvantages of CSL insurance

So, what is the disadvantage of a combined single limit policy?

• Premiums may be higher. Since these policies are flexible and don’t limit your coverage within specific categories, they may cost more. 
• It’s easy to be underinsured. It’s important to remember that your CSL limit is intended to cover all liability damages after an accident, regardless of how many drivers are injured or what property is damaged. When you’re just looking at one total coverage number, it may be easy to feel that you’re adequately protected when you don’t actually have sufficient coverage, especially following an accident with three or more vehicles.
• Claims approval may take longer. Many carriers will process property damage and bodily injury claims separately, allowing drivers to fix or replace a vehicle even if their injuries aren’t yet resolved. With a CSL policy, however, these claims are combined against the total coverage limit and claims may take longer to process.

How to determine the right policy for you

So, what is better — combined single limit or split limit — and how do you decide which is right for you? The answer really comes down to personal preference, the type of auto coverage you need, and your personal priorities.

In general, a combined single limit policy is better for:

• Commercial drivers and/or business owners.
• Drivers who want flexible and simple coverage.
• Higher net worth policyholders or those with large assets to protect.

A split-limit policy is better for:

• Drivers who want the lowest possible premiums.
• Policyholders who want or need control in how their coverage is allocated.

You’ll find that combined single limit coverage is an option offered by many of the Jerry partner insurers. You can browse available coverages, get quotes from multiple carriers, compare rates, and decide exactly which type of policy best meets your needs and budget.