Today I’d like to talk to you about how insurance companies list your coverage on a policy because there are a few different ways that they do it. 

With some policies, you’ll hear people say, “Oh, you know, well, in terms of coverage, I have 2,550 or I have $100,000, $300,000.” And I’m always getting these questions from clients about, “Well, what exactly does that mean?” 

For example, if a person has $300,000 of coverage, does it mean that another person would be entitled to it if they have an accident with injuries that substantiate that kind of loss?

What Do The Two Numbers  Mean?

Well, the answer is no. If insurance companies say $100,000, $300,000, that means no one person can receive more than $100,000, and no group of people can receive more than $300,000. 

Now the reason why I chose the $100,000, $300,000 example is I want to give you some illustrations. So let’s say that there are 2 people in a vehicle. Those 2 people can each get a maximum of $100,000. The fact that there’s a total of $300,000 does not allow each of them to get $150,000 because the per-person limit is $100,000.

If there are 3 people in the vehicle, the same thing would hold true. Each person could get up to $100,000. If there are 4 people in the accident, it gets a little dicey. Now, there’s no way that each person can get $100,000 because that would be $400,000 and the maximum is $300,000. So those 4 people would have to somehow split $300,000. 

What Is A CSL Policy?

There’s a second way that insurance companies list coverage, and that’s what’s called a CSL policy. That stands for combined single limits. Instead of giving this amount and that amount, they’ll just give one amount.

It might say 500,000 CSL. That means we don’t care how you split it up. We don’t care how many people are in the car. The maximum you can get is $500,000. 

So if there’s one person in the car and their claim is worth it, they could get $500,000. If there are 10 people in the car, it has to go by the value of each person’s injuries. The total may come up to $500,000, but it could be less. 

I hope this information is helpful to you. If you have any questions, please email me at chip@cosselaw.com.