What does a split limit in an insurance policy refer to?

A split limit in an insurance policy specifically refers to the separation of coverage limits for bodily injury and property damage. This means that the policy establishes different maximum amounts that an insurer will pay for each type of damage. For example, a policy might have a split limit of $100,000 for bodily injury per person and $300,000 for total bodily injury per accident, while having a separate limit of $50,000 for property damage.

This structure allows for more tailored protection, providing specific amounts for the various kinds of claims that may arise in an accident. By having distinct limits for bodily injury and property damage, policyholders can better manage their coverage according to their individual needs and risk factors.