Csl Auto Insurance: Understanding Combined Single Limit

Combined Single Limit (CSL) auto insurance is a type of policy that groups all liability coverage into a single amount, rather than splitting it into different buckets for bodily injury and property damage. This means that all claims, whether for bodily injury or property damage, are paid out of the same combined limit, up to the amount stated on the policy. For example, a policy may list its liability limit as $500,000 CSL, which would cover all claims arising from an accident, regardless of whether they are for bodily injury or property damage.

Split-limit insurance coverage

For example, if you chose 100/300/100 as your coverage limits, this means $100,000 per person in liability coverage, $300,000 per accident for liability coverage, and $100,000 of property damage coverage. With this type of liability, you cannot exceed any of the individual coverage amounts. So, if you were to get in an at-fault accident and these were your coverage limits, the insurance company would not pay out any more than $100,000 for any one individual, no more than $300,000 per accident (still not allowing any one individual to claim over $100,000 of coverage), and no more than $100,000 of property damage.

Split-limit policies tend to have lower premiums because they offer narrower insurance coverage. They are also more cost-effective options for insured parties. The liability limits set by insurance companies are generally expressed in numbers. For example, a split-limit policy may impose limits like 100/300/50. This means the policy pays $100,000 per person per incident for bodily injury, with a maximum of $300,000 per incident. The limit for property damage per incident, in this case, would be $50,000.

However, if one person seeks $250,000 in damages for their injuries, the maximum the split-limit policy will pay is $100,000, even if only one person is injured in the accident. The only way the split-limit policy will pay the $300,000 maximum is if three different people each have $100,000 in claims.

It is important to know how much asset protection you need to make sure you are choosing the proper amount of coverage.

Combined single limit insurance coverage

Combined single limit (CSL) insurance is a form of auto liability insurance that is mandatory in all states for driving a vehicle. CSL insurance provides compensation to individuals that the insured driver causes harm to, through injury and property damage. This type of insurance is often used by commercial businesses, such as trucking companies, and tends to feature higher premiums than split-limit policies.

CSL insurance covers all necessary medical expenses, including the cost of emergency treatment, transport to the hospital, diagnostic and laboratory testing, physician and surgical services, hospitalization, prescription medication, physical therapy, rehabilitation, and the provision of assistive devices. It also covers lost wages resulting from injuries, loss of future earning capacity, and property damage, such as the cost of repairing or replacing a vehicle.

A CSL policy has an overall auto coverage limit and doesn't have separate maximum coverages for injury per individual, injury per accident, or property damage per accident. For example, a $500,000 CSL car insurance policy would cover up to $500,000 in total claims for bodily injury and property damage. This means that if you are involved in an at-fault auto accident, your insurance coverage will pay up to a specified amount, regardless of how many individuals are injured or the severity of their injuries.

The advantage of a CSL policy is that it eliminates the need for an umbrella policy because the limits are typically higher. An umbrella policy provides additional coverage when your auto insurance limits have been exceeded. CSL policies also tend to have simpler claims processes. However, they can be more expensive and challenging to find for personal auto insurance policies.

When deciding between a CSL and a split-limit policy, it is important to consider the specifics of the accident, as well as the increasing medical and auto repair/replacement costs. It is recommended to increase coverage limits and purchase additional riders to avoid being underinsured.

Bodily injury liability

The coverage limits for bodily injury liability insurance are typically split into two categories: per-person and per-accident limits. The per-person limit applies to each individual injured in an accident, while the per-accident limit applies when multiple people are injured in a single accident. For example, a policy with a $25,000 per-person limit and a $50,000 per-accident limit will cover up to $25,000 in medical expenses for each injured person, with a maximum of $50,000 in total claims for a single accident.

When determining how much bodily injury liability coverage to purchase, it is recommended to consider the value of your assets or the highest limits you can afford. This is because, in the event that your insurance coverage is insufficient to pay for the damages caused, the injured party may take legal action to recover the remaining amount. Increasing your coverage limits provides greater protection and is often more cost-effective than maintaining lower limits.

Property damage liability

If you're responsible for an accident, property damage liability coverage will take care of the cost of repairing or replacing another person's property. This typically means damage to someone else's car, but it could apply to any other type of property you damage in an accident.

If the cost of damages exceeds the amount of your coverage, you are responsible for the remaining cost. You can choose a higher limit for this coverage, meaning you'll be covered for a higher amount if you're in an accident.

In a split limit automobile policy, the property damage limit of liability is independent of the bodily injury limit and is paid separately.

In a combined single limit (CSL) policy, there is no differentiation between bodily injury payouts per person, per accident, or property damage claims. All claims are paid out of the same combined limit, up to the amount stated on your declarations page.

Advantages and disadvantages of CSL insurance

CSL, or Combined Single Limit, is a type of auto insurance policy that covers bodily injury and property damage claims. It is different from a split limit insurance policy, which sets a specific dollar limit for each component.

Now, let's look at the advantages and disadvantages of CSL insurance:

Advantages of CSL Insurance:

• More flexibility: CSL insurance allows for more flexibility in how the coverage amount is applied. There is no limit on what is payable per claim component, so the insurance company can divide the single, dedicated amount as needed among different types of claims, such as bodily injury and property damage.
• Comprehensive coverage for high-value assets: Individuals with high-worth assets often prefer CSL insurance because it provides a higher level of coverage. The policy limits are typically between $300,000 and $500,000, making it a worthwhile investment to protect valuable assets.
• No need for additional coverage: Due to the flexibility and higher coverage limits, CSL insurance can eliminate the need for additional policies or riders. This simplifies the insurance process and ensures that all types of claims are covered under a single policy.

Disadvantages of CSL Insurance:

• Higher premiums: One of the main drawbacks of CSL insurance is the cost. CSL policies tend to have higher premiums than split limit policies because they offer broader coverage. This higher cost may be a deterrent for those with fewer assets or those who are looking for more affordable insurance options.
• Longer claims resolution: With CSL insurance, insurance companies often need to wait for all parties involved in an accident to submit their claims before settling any individual claim. This can result in longer claims resolution times compared to split limit policies.
• Inadequate compensation for multiple claimants: In cases where multiple individuals are injured in an accident, the combined single limit may not be sufficient to adequately compensate all claimants. The maximum amount available from the policy has to be divided among all injured parties, which can result in lower settlements for each person.

Frequently asked questions