If someone else’s careless or reckless actions caused an auto accident that hurt you, one of the most important things that will determine if you can get compensation for the costs and effects of your injury is how much insurance the person who caused the accident has.
For this reason, insurance is the main way that most claims for personal injury are paid. However, not all insurance policies are created the same. How much money you get for your injuries also depends on whether the other person has a split-limit policy or combined single-limit insurance.
Keep reading to learn more about combined single limit insurance, a type of commercial auto insurance, how it’s different from split limit policies, and most importantly, what it means for the amount of money you get in compensation.
If you’ve shopped around for car insurance, you’ve likely come across the acronym “CSL” when reviewing policy options. But what exactly does CSL stand for and how does it work?
CSL stands for “combined single limit” and refers to a type of liability coverage that combines multiple limits into one overall limit. This differs from a split limits policy that separates coverage into distinct limits per person, per accident, and for property damage.
In this comprehensive guide, we’ll explain everything you need to know about combined single limits, including:
- What a CSL policy is
- How CSL coverage works
- CSL policy limits
- The pros and cons of CSL vs split limits
- Whether CSL is right for you
Let’s dive in!
What is a Combined Single Limit (CSL) Car Insurance Policy?
A combined single limit policy, often referred to as just CSL insurance, bundles all liability coverages into one shared limit.
With a CSL policy there is a single maximum payout limit that applies to
- Bodily injury liability per person
- Bodily injury liability per accident
- Property damage liability
So if you have a policy with a $100,000 CSL, that $100k limit applies to bodily injury and property damage claims combined.
This differs from a split limits policy, where you have distinct limits for bodily injury per person, bodily injury per accident, and property damage.
For example, split limits might look like:
- $30,000 bodily injury per person
- $60,000 bodily injury per accident
- $25,000 property damage
With split limits, each type of claim has its own maximum. But with CSL, there is just one shared limit.
How Does CSL Auto Insurance Coverage Work?
When you have a CSL policy, the single limit is shared across any claims stemming from an accident. Here’s an example of how CSL works in practice:
Let’s say you have a CSL policy with a $250,000 limit and are involved in an at-fault accident. There are two injured parties whose medical bills and lost wages come to $90,000 and $150,000 respectively. There is also $50,000 in property damage to the other vehicle.
Your CSL policy would cover:
- $90,000 for the first injured party
- $150,000 for the second injured party (but only up to the per person limit)
- $10,000 for the property damage
For a total payout of $250,000 – the full CSL policy limit.
The key is that the payout can be allocated flexibly across bodily injury and property damage claims until the single limit max is reached.
What Are Typical CSL Policy Limits?
CSL policy limits can range quite a bit but are generally higher than split limits policies. Here are some common CSL amounts:
- $100,000
- $250,000
- $300,000
- $500,000
- $1 million
The minimum required CSL insurance varies by state. For example, Nevada requires $95,000 CSL coverage while Florida mandates $10,000 CSL for bodily injury and property damage.
When choosing your CSL limits, experts recommend picking an amount that covers your net worth. Having insufficient liability coverage could put your assets at risk in the event of an at-fault accident.
The Pros and Cons of CSL vs Split Limits
So when might you want a combined single limit policy instead of split limits? Here are the key pros and cons to weigh:
Pros of CSL:
- Simpler payout process – only one limit to track
- Typically higher coverage than base split limits policies
- Single payout limit is flexible across claims
- May obviate need for umbrella insurance
Cons of CSL:
- Premiums are more expensive
- Injured parties compete for payout up to single limit
- Per person caps may be lower than split limits bodily injury
Ultimately, CSL offers convenience and higher potential payouts but at a cost. It provides comprehensive protection tailored to your total assets.
Is CSL Insurance Right for You?
So when does CSL insurance make sense for your situation? Here are a few key factors to consider:
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If you have significant assets to protect, a six-figure CSL policy can provide robust coverage.
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CSL policies are ideal if you want streamlined insurance without needing an umbrella policy on top.
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However, base CSL policies may have lower per person bodily injury limits than split limits. Review this carefully.
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Make sure to get quotes for both CSL and split limits options from insurers. CSL is typically more expensive so factor premium costs.
The best liability policy for you depends on your specific circumstances and coverage needs. Discuss CSL vs split limits with your insurance agent or broker to make the right choice.
The Bottom Line
CSL insurance condenses auto liability coverage into one combined limit that applies per accident. This unified structure makes payouts more straightforward while providing higher potential coverage. But CSL does cost more than basic split limits policies.
Take time to understand what CSL is, how it works compared to split limits, and what policy limits you need. Review CSL policies from leading insurers before deciding what type of liability coverage works best for your situation.
The Disadvantages of a Combined Single Limit
When more than one person is hurt in an accident, dealing with an at-fault party who has CSL insurance becomes very difficult.
The combined single limit is the most money that the policy will pay out in insurance, no matter how many people are hurt, how badly they are hurt, or how much property damage is done.
Often, CSL policies don’t have a high enough limit to fully cover all needs. This means that people will have to settle for an amount that doesn’t really reflect the costs and effects they’ve had to deal with, and the driver of the commercial vehicle may have to take personal responsibility for the damages that were not covered by the policy.
How CSL Insurance Differs from Split Limit Insurance
A more modern way to get money after an accident is with a combined single limit policy. However, split limit policies are more common and are probably what you are more familiar with. A split limit policy is what most individuals have for their personal vehicles.
When an individual has split limit liability insurance, you will generally see three numbers listed for the policy. These are the policy limits for bodily injury per person, bodily injury per accident, and property damage. For instance, people who want to register their cars in Florida must have at least a 125/250/10 liability auto insurance policy. This is the split limit liability coverage you must have to drive on Florida roads.
What this means is:
- The most the policy will pay for bodily injury is $125,000 per person.
- For injuries to people, the policy limits are $250,000 per accident.
- The policy covers up to $10,000 in damage to property per accident.
Let’s consider an example to see how each type of policy performs.
It’s possible that the person who has a split limit insurance policy with Florida’s minimum coverage levels is at fault in an accident. There were two people injured. One person had $90,000 in medical expenses and the other person’s medical expenses were $170,000. There was $9,000 in property damage sustained by a victim of the accident.
The first victim’s $90,000 in medical bills would be covered because they were less than the policy limit for bodily injury. The same would be true for the damage to their property because it was less than the policy limit for property damage. However, the other victim sustained damages of $45,000 over the policy limit. Additionally, the amount of bodily injury costs per accident also exceeded the limit of the policy by $10,000. This results in thousands of dollars in uncovered costs.
With a $300,000 CSL policy limit, all the costs would be covered because the total of the people’s medical bills and the cost of fixing or replacing the car is $269,000. This is less than the policy limit.
The Canopy Group – CSL vs Split Limits Insurance
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