If an auto policy has liability limits of 40/60/20, what is the equivalent combined single limit?

To determine the equivalent combined single limit for an auto policy with specified liability limits, it is important to understand what the numbers represent. The format of liability limits is typically represented as three figures: the first figure is the limit for bodily injury per person, the second figure is the limit for bodily injury per accident, and the third figure is the limit for property damage.

In this specific case, the liability limits are 40/60/20. This means:

• $40,000 for bodily injury to one person,

• $60,000 for total bodily injury coverage per accident,

• $20,000 for property damage.

To convert these limits into a combined single limit (CSL), which provides a single amount that covers both bodily injury and property damage claims, you can add the limits for bodily injury to the property damage limit. In this instance, the highest bodily injury limit per accident is $60,000, and when you include the $20,000 for property damage, you arrive at a combined total.

Thus, the calculation is as follows:

$60,000 (total bodily injury limit) + $20,000 (property damage limit) = $80,000.

This total represents the combined single limit for liability coverage,