Insurance Term Definitions: Combined Single Limit (CSL)

We know insurance jargon can be difficult to understand, but it doesn’t have to be. We’ve simplified complex insurance terms that may come up as you make decisions about your auto coverage.

Personal auto policies may have split limits of liability or combined single limits. It simply states a single dollar limit that applies to any combination of bodily injury and property damage liability claims. In comparison to split limits where three separate dollar amounts apply to each accident: per person limit, per occurrence limit for all injured persons, and per occurrence limit for all property damage resulting from the accident. Combined single limit policies offer broader coverage.

On the other hand, a split limit provides separate maximum dollar amounts an insurer will pay for bodily injury and property damage. The max for bodily injury is applied on a per-person and per-occurrence basis. It’s only applied per occurrence for property damage.

Example:

The policy might state that the insurer will pay up to “x” dollars for a single claim; regardless of whether all of the components of the claim are related to one person’s injuries, or whether there are three injured parties represented by the claim. The combined single limit maxes out at the stated dollar amount either way. Combined single limit policies are helpful as they allow insurance companies to apply the maximum amount of coverage where needed.

Additional Resources:

• Investopedia