Combined Single Limit Liability

Posted in Auto Insurance , Liability

January 13th, 2009

Combined single limit liability is an auto insurance policy which creates a single damages limit for an insured motorist in the event of an accident that results in bodily injuries and personal property. This is the equivalent of a lump sum, which can be applied by the insured motorist as he or she sees fit.

For example, a young woman is driving to work one morning in her Ford Taurus. She has combined single limit liability insurance. Shes late, so she decides to hurry to make the yellow light just before it turns. Unfortunately for her and the driver of an on-coming Toyota Forerunner, she hits the Toyota head on, and the result is a major accident. Airbags deploy, medics are called, and the driver of the Toyota the car being a complete wreck is taken to the hospital with internal injuries. Its a major accident, and the young woman is responsible. With her combined single limit liability, which is capped at $300,000, she is able to pay for the Toyota, but not all of the other drivers medical bills. That she may have to pay for out of pocket. However, if they turn out to be minor, she can pay them. With combined single limit liability, she can disburse the cash in the manner she deems fit. There is no total on either bodily injury or property damage, except for the $300,000.

In contrast, a split limit liability policy sets out payment caps for different aspects of an accident, depending on the number of people involved, and the amount of property damage.

As with all aspects of auto insurance policies and coverage, be sure to ask as many questions as possible about combined single limit liability with a trained, qualified insurance expert before you make any decisions.