In fact, this is not true. Split limits or CSL (combined single limits) are both legitimate choices, depending on the situation. This depends on what the actual amounts of the limits are, and not just how they are applied in any particular loss.

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.

A liability loss can be either all Property Damage or all Bodily Injury or a combining of the two. However, depending on which coverage limit you decide to purchase, the maximum amount covered is either $50,000 or $100,000.

Split Limits of $100K property damage and $300K bodily injury and $100K bodily injury per person simple means that the insurance company is required to pay up to $300K in total bodily injury claims ($100K per person), depending on the number of people injured, as well as the extent of their injuries AND up to $100K in property damage claims.

So Mexican Insurance fans, which would you rather have, A. $50k CSL or B. Split Limits of $50k per person/$50k per accident and in addition $50k Property Damage? See my preference at the bottom.

Suggestion: We recommend a minimum limit of $50,000 Property Damage by itself in case you knock heads with someone else's brand new SUV.

I would personally choose the second option (B) of $50K per person, $50K per accident AND $50K for property damage, which protects you up to $100K against loss versus a CSL Limit of $50K in protection to cover everything.

If you're still confused about how much each type of 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.