In a split limit coverage, what is the total limit typically expressed in?

In split limit coverage, the total limit is expressed in terms of the maximum payout available for specific categories of damages, typically involving bodily injury and property damage. The correct interpretation of split limits revolves around how these limits are structured, which is commonly a combination of different individual limits for bodily injury per person, bodily injury per incident, and property damage.

While interpreting these limits, the most essential aspect is that the coverage defines how much will be paid for each specific individual and for the entire incident. For example, a split limit might be expressed as $100,000 per person for bodily injury, $300,000 per incident, and $50,000 for property damage. Hence, in this structure, understanding the limits per incident is crucial because it encompasses how much is covered in total for multiple parties involved in one occurrence, making it the key focus for determining maximum liability in a claim scenario involving more than one individual.

This clarity regarding the terms of coverage helps in assessing potential financial risks associated with vehicle-related incidents and ensures that policyholders understand the constraints of their insurance protection. Other interpretations like limits per vehicle or limits per insurance category don't capture the essence of how split limits manage the distribution of coverage in specific incident scenarios, and limits per person mainly emphasize individual