Combined single limits
Combined individual limits is insurance covering both accidents, property damage, and personal injury. With this combination, you can get the above amount of compensation after an accident. The combined limits offer a greater range than the limit split principle. This insurance option is, therefore, a bit more expensive[1].
Types of polices
There are two basic types of insurance policies combined single limit and split limit. Some insurers offer only one of these options, while others offer both options. When deciding on split limit options, you must choose three limits offered by your insurer and each of them is enforced separately. Choosing a limit insurance policy is dangerous because after the accident you will probably only use the limit per person and the rest of them will remain untouched. Car insurance is mandatory, but it is only up to the owner how wide the policy will be, i.e. what it will cover. The amount of compensation you can get for material and health damage depends largely on the contract you have with the insurer. Because of the high cost, people often choose minimum insurance limits, which in severe accidents may not cover all damages. When choosing options, you need to think carefully about what is more profitable for us[2].
Verbal threshold
Someone who buys insurance must choose whether they will be entitled to prosecution in the event of a car accident. According to the option to close the lawsuit, you agree not to sue the person who was the perpetrator of the accident, unless you get one of the injuries on this list[3]:
- death,
- significant deformities of the body or scars,
- amputation,
- permanent injury.
This is the so-called verbal threshold or limitation on lawsuit option. Usually, the court decides whether the verbal threshold is exceeded in the event of an injury.
Zero threshold
There is also another option to choose from so-called zero thresholds or no limitation on lawsuit option. In this case, the injured party has the right to sue the perpetrator of the accident for pain and suffering caused by bodily injuries, even if they are minor. This option is much more expensive than the verbal threshold. It should be remembered that no matter what we choose, you can always sue the perpetrator of the accident for reimbursement of medical expenses and for lost earnings[4]
Example
If your packet has the verbal threshold option and you have an accident when another driver does not stop at the stop sign, and therefore injured wrist injuries, you cannot sue him for pain and suffering, at most for material damage. Unless this injury does not allow you to practice your profession, for example, games you are a professional tennis player. However, if you chose the zero threshold option, you can sue the perpetrator of the accident because you love to play tennis and you can't do it through injury[5].
| Combined single limits — recommended articles |
| First party insurance — Compulsory insurance — Floater policy — Insurance — Aggregate Limit — Dual insurance — Period of indemnity — Mortgage redemption insurance — Indemnity clause |
References
- Battersby G. (ed.)(2010), Drafting internet agreements, Aspen Publishers, USA
- Boylan E. (ed.)(1999), Automobile insurance made simple, Universal Publishers, USA
- Flintsh G. (ed.)(2009), Quality management of pavement condition data collection, Transportation research board, USA
Footnotes
Author: Izabela Szmalec
