Understanding Insurance Policy Limits: Per Person vs Per Accident

A per-person limit is the most your insurer will pay for one individual's injuries, and a per-accident limit is the most it will pay for everyone injured in a single accident combined. Understanding the difference is critical, because the per-person cap can leave you exposed even when your total coverage looks generous on paper.

What do split limits look like?

Auto liability coverage is often written as three numbers, such as 100/300/100. These are called split limits, and each number represents thousands of dollars.

• First number ($100,000) = bodily injury liability per person
• Second number ($300,000) = bodily injury liability per accident, total
• Third number ($100,000) = property damage liability per accident

How does the per-person limit work?

The per-person limit caps what your policy pays toward any single injured individual, no matter how severe their injuries. With a 100/300 policy, even if one person's medical bills reach $250,000, your insurer pays only $100,000 toward that one person. The rest could come out of your own pocket.

How does the per-accident limit work?

The per-accident limit is the ceiling on what the policy pays for all injuries in one event, no matter how many people are hurt. With a 100/300 policy, if four people are injured, the total payout for all of them can't exceed $300,000, and no single person can collect more than $100,000.

This matters most in multi-victim accidents. If you cause a crash that injures several people, that $300,000 can be exhausted quickly, leaving you personally liable for the remainder. Medical bills, lost wages, and pain-and-suffering damages add up fast, and when the policy runs dry, the injured parties can pursue your savings, your home, and even a portion of your future wages through a court judgment.

What about combined single limits?

Some policies use a combined single limit (CSL) instead of split limits. A CSL is one total pool, say $500,000, that can be applied to any combination of bodily injury and property damage in an accident. This offers more flexibility because there's no separate per-person sub-cap, so the money can flow wherever it's needed most in a given claim. Combined single limits are common on higher-end and commercial auto policies, and they typically cost a bit more than split limits for the same headline number.

How much liability coverage should you carry?

Most experts recommend carrying far more than your state's minimum, which is often dangerously low. A good target is enough to protect your assets and future income.

1. Add up your net worth, including savings, home equity, and investments
2. Choose liability limits at least equal to that amount
3. Consider an umbrella policy if you need protection beyond standard limits
4. Re-check your limits whenever your financial situation changes

Matching your limits with Truvo

Picking the right limits is one of the most important coverage decisions you'll make, and it's easy to get wrong when you're only looking at one quote. Truvo is an AI-native insurance broker that compares liability options across multiple carriers at once and connects you with licensed advisors who explain exactly what each limit means, all without the flood of spam calls that usually follows an online quote.