What types of losses are indicated by the split limit in an auto insurance policy?

The correct answer is that the split limit in an auto insurance policy indicates bodily injury per person, per accident, and property damage.

In auto insurance, split limits are used to define the maximum amount an insurer will pay for various types of bodily injury and property damage in the event of an accident. Typically, this is represented in a three-number format, such as 25/50/15. The first number refers to the maximum amount paid for bodily injury per person harmed in an accident; the second number indicates the maximum total amount paid for bodily injury per accident, regardless of how many individuals are involved; and the third number denotes the limit on property damage liability for the accident.

This structure ensures that both the interests of individuals who may suffer bodily injuries and those whose property may be damaged are covered, emphasizing the need to adequately protect against various potential liabilities arising from a motor vehicle accident. Understanding this split is crucial for determining the level of coverage you need and ensuring compliance with state minimum insurance requirements.