I often find that confusion lingers over the application and definition of two different types of Liability Limits, even among insurance salesmen with a great deal of experience. I often see agents advising buyers to avoid of Split Limits, as if there is something to fear after the deal is made.

In actuality, this fear scheme is unfounded. Either Split Limits or CSL Limits may or may not be the top choice, because it does not matter as much how they are exercised in a covered loss, but rather the overall dollar amount of the limit purchased.

For lesson purposes, CSL or Combined Single Limits of either $50,000 or $100,000 apply to either Property Damage Liability or Bodily Injury Liability. In other words, the maximum covered amount an insurance company will pay for damages that are your fault is either $50,000 or $100,000 and it makes no difference whether it’s a BI or PD loss.

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.

If you have split limits, such as $100,000 worth of coverage for bodily injury (BI) per person / $300,000 BI coverage per accident, and $100,000 worth of coverage for property damage (PD), this means that the insurance company is required to pay up to $300,000 in BI (depending on the number of persons injured), as well as up to $100,000 worth of PD claims.

For example: Let’s suppose you have a choice between a $50,000 combined single limits or a policy that has split limits of $50,000 BI coverage per person, $50,000 BI coverage per accident, and $50,000 coverage in property damage.

In Mexico, you might be in an accident with someone else’s brand new SUV, so we suggest that you carry a minimum limit of $50,000 for Property Damage Liability.

In this example I choose B because I have up to $50,000 in BI coverage AND up to $50,000 in PD coverage. This also ensures that you have total coverage of $100,000 instead of $50,000, which gives you more protection.

If you’re still confused about how much each type of Mexican Automobile Insurance coverage protects you, contact your own financial adviser and have him or her go over the different types of policies with you. This information is intended for educational purposes only.