Aggregate Limit

What is an 'Aggregate Limit'

An aggregate limit is a contract provision used in insurance to limit the amount that can be paid in the policy period. An aggregate limit is the maximum dollar amount your insurer will pay to settle your claims. Often the limit is referred to as an annual aggregate limit, which is just the total amount your insurer will pay in a single year.

BREAKING DOWN 'Aggregate Limit'

For example, if your annual aggreate limit is $20 million, and you have $25 million worth of claims that occured in the period, then the company would only pay up to $20 million. Also, aggregate means you can have multiple claims in one period but again any sum exceeding the limit would not be paid out.

RELATED TERMS
  1. Aggregate Limit Of Liability

    The most an insurer can be obligated to pay to an insured party ...
  2. Aggregate Product Liability Limit ...

    The maximum sum of money that an insurance company will pay during ...
  3. Manual Excess

    The premium charged for insurance coverage above the liability ...
  4. Aggregate Limits Reinstatement

    An insurance policy clause that allows the policy limits to be ...
  5. Aggregate Excess Insurance

    An insurance policy that limits the amount that a policyholder ...
  6. Combined Single Limits

    A provision of an insurance policy that limits the coverage for ...
Related Articles
  1. Personal Finance

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.
  2. Personal Finance

    Exploring Advanced Insurance Contract Fundamentals

    Understanding your contract can help you protect our family's financial security.
  3. Personal Finance

    What To Do When Your Insurance Company Won't Pay

    Struggling to get a claim honoured? Find out what you can do.
  4. Personal Finance

    Will Filing An Insurance Claim Raise Your Rates?

    An accident can mean higher insurance costs - even if it wasn't your fault.
  5. Financial Advisor

    Top Problems with Financial Data Aggregation

    A new front in personal finance technology—data aggregation—seeks to make our financial lives easier. But here's why it may be stalling.
  6. Personal Finance

    How Much Life Insurance Should You Carry?

    Learn how much - if any - insurance you really need.
  7. Personal Finance

    Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.
  8. Markets

    Cost-Push Inflation Versus Demand-Pull Inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  9. Personal Finance

    5 Tips For Getting The Right Contents Insurance

    There are many options when it comes to insuring the contents of your home.
  10. Investing

    Insurance 101 For Renters

    If it's time for you to leave the nest, find out how to protect your new home from disaster.
RELATED FAQS
  1. How are open market operations and monetary policy related?

    Understand the meaning of an aggregate limit in an insurance policy as well as which types of insurance companies are most ... Read Answer >>
  2. What factors cause shifts in aggregate demand?

    Find out how aggregate demand is calculated in macroeconomic models. See what kinds of factors can cause the aggregate demand ... Read Answer >>
  3. How do I borrow money from my life insurance?

    Hello, I would like to find out the steps I need to take towards borrowing money off my life insurance. ... Read Answer >>
  4. How are aggregate demand and GDP related?

    See why aggregate demand and gross domestic product (GDP) are necessarily the same thing according to Keynesian macroeconomic ... Read Answer >>
  5. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  6. Can your life insurance company sue you?

    Find out when life insurance companies have the right to recover claims. Learn about the most common reasons why a life insurance ... Read Answer >>
Trading Center