Aaa Mexican Insurance Single Limits Or Split Limits

Aaa Mexican Insurance Single Limits Or Split Limits



Aaa Mexican Insurance - Single Limits Or Split Limits?
Even among experienced insurance personnel I​ find confusion reigns on​ the​ definition and application of​ the​ two types of​ Liability Limits .​
I​ see agents warning buyers to​ Beware of​ Split Limits,​ as​ if​ we might need to​ wash our hands after purchase.
I see agents warning buyers to​ Beware of​ Split Limits,​ as​ if​ we might need to​ wash our hands after purchase.
In reality,​ this fear tactic is​ unfounded,​ as​ either CSL or​ Split Limits may or​ may not be the​ best choice,​ because it​ all depends on​ the​ actual amount of​ the​ limits,​ not simply how they are applied in​ a​ covered loss.
Combined Single Limits i.e .​
CSL Limits of​ $50,​000 or​ $100,​000 apply to​ either Bodily Injury OR Property Damage .​
In other words,​ the​ maximum the​ insurance company will pay for covered damages that have been deemed to​ have been caused by you,​ (your fault) is​ $50,​000 or​ $100,​000 .​
The loss can be all Bodily Injury or​ all Property Damage or​ any combination of​ the​ two,​ but the​ maximum amount covered is​ $50,​000 or​ $100,​000 depending on​ the​ amount of​ coverage you​ decide to​ purchase.
Split Limits such as​ $100,​000 bodily injury per person/$300,​000 bodily injury per accident/$100,​000 property damage means that the​ insurance company is​ obligated to​ pay up to​ $300,​000 in​ bodily injury claims depending on​ how many persons are injured & the​ extent of​ their injuries AND up to​ $100,​000 in​ property damage claims.
So insider fans,​ hypothetically,​ which would you​ rather have,​
A .​
$50k CSL or​ B .​
Split Limits of​ $50k per person/$50k per accident/$50k Property Damage? My preference at​ the​ bottom
TIP: We recommend a​ minimum limit of​ $50,​000 Property Damage in​ case you​ knock heads with someone else's brand new SUV.
My Preference: B because I​ would have $50K BI AND $50K PD,​ a​ maximum of​ $100,​000 protecting against loss versus $50k to​ protect against all potential loss in​ example A.
If you​ are confused or​ unsure in​ any way about about how much exposure you​ are willing to​ assume,​ consult your personal financial or​ legal advisor .​
The information above is​ meant to​ be used for general educational purposes only.




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