what is the difference between 250,000/500,000 and 500,000/500,000 liability limits

UPDATED: Nov 9, 2017

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Nov 9, 2017Fact Checked

Free Insurance Comparison

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Nov 9, 2017

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

UPDATED: Nov 9, 2017

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Nov 9, 2017Fact Checked

In auto insurance, liability limits are offered as a single limit or, as in your case, “split limits”.  The $250,000/$500,000 allows a payment of up to $250,000 per person for bodily injury and a total of $500,000 per accident.  If there are multiple injured parties as in the above case, the insurance company can pay the per person limit of $250,000 for the one injured party.  They will then only pay $250,000 of the $350,000 in injuries.  That meets the per accident threshhold.

If you have $500,000 per person for injury, the one injured at $250,000 will get that amount.  But since the per accident limit remains at $500,000 the most the other party can receive is again $250,000.  The insurance company can choose to pay the $350,000 to the one injured party, but they would then only pay $150,000 to the other party, to meet the $500,000 threshhold.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

secured lock Secured with SHA-256 Encryption

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

secured lock Secured with SHA-256 Encryption