Single Limit Liability: Tips for Getting the Best Rate

An important distinction to be made when looking into auto insurance coverage is that between split limit and single limit liability. Essentially, combined single limit liability lists your entire amount of personal injury and property damage coverage in one figure, whereas split limit divides up coverage amounts.

Single Limit vs. Split Limit Insurance

With single limit liability insurance, you are covered in the event of an accident up to the single figure – whether it is property damage or personal injury of another. There is no limit to property damage or injury coverage, as long as it doesn’t exceed the total figure.

Split limit, on the other hand, separates each section, and it only covers damages up to that point. If you carry $25,000 worth of property damage coverage and $50,000 for personal injury, but you cause $30,000 worth of damages and $75,000 in personal injury, you are personally responsible for the difference.

Finding the Best Rates

Single limit liability insurance is more expensive to purchase, yet it is a safer bet. With split limit insurance you are risking personal liability, especially if you carry only minimum coverage, because damages could easily exceed your limit. To find the best rates for single limit insurance, contact your insurer first. If you have a good driving record and credit score, you may be eligible for a discounted rate. Drivers age 55 and older are also able to get low rates due to the low risk associated with them. In addition, contact the competition. If your insurance is up for renewal and you want to switch to single limit coverage, consider going elsewhere if another company can get you a better deal.

In terms of accidents among drivers with single limit liability, statistics do not indicate a difference from those with split limit. However, driving with single limit coverage is a safer option that puts your personal finances in less jeopardy.