When it comes to car insurance, most people are familiar with coverage types like collision and property damage, but most may not be aware of bodily injury liability coverage. This coverage protects you and your financial assets if you cause an accident that injures other people.
As a licensed insurance broker, my clients often ask me about bodily injury liability coverage. This type of car insurance protects you and your financial assets if you cause an accident that injures other people. In this article, we will discuss what bodily liability coverage is, how it works, what it covers, what coverage you need, factors that affect your coverage, and give professional tips on choosing the right coverage for your needs. Let’s get started!
Table of contents
What Is Bodily Injury Liability?
As an insurance representative, my clients frequently ask me about how they can protect themselves if they cause an accident that injures others. I recommend considering bodily injury liability coverage.
|Coverage||Bodily injury liability coverage is a type of car insurance that covers damages or injuries that you cause to another person.|
|Maximum Payout||Each policy has a maximum amount that it will pay out, after which the policyholder is responsible for paying any additional costs.|
|Legal Defense||Some policies may also cover the legal fees associated with defending against a lawsuit resulting from a covered accident.|
|Required In All States?||Bodily injury liability coverage is required in all states except for New Hampshire.|
Here Is Some More Information About Bodily Liability Coverage:
- Bodily Injury Liability coverage is a type of car insurance that covers the costs associated with injuries you cause to other people in an auto accident. This can include medical expenses, lost wages, and other damages.
- If you are found to be at fault for an accident. In that case, your Bodily Injury Liability coverage will pay for the injuries and harms of the other party up to the limits of your policy.
- Bodily Injury Liability coverage only applies to injuries to other people. It does not cover your injuries or damages to your vehicle.
- If you want coverage for those things, you’ll need to purchase additional types of car insurance, such as Personal Injury Protection (PIP) or Collision coverage.
- Bodily Injury Liability coverage is required by law in most states. The amount of coverage required varies by state, so it’s essential to check your state’s minimum coverage requirements.
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How Does Bodily Injury Liability Work?
As an insurance professional, my clients often ask me what they can do to protect themselves if they cause an accident that causes injuries to others. In that case, your Bodily Injury Liability coverage will kick in to cover the costs of those injuries. Here’s how it works:
- You file a claim with your insurance company. After an accident, you’ll need to notify your insurance company immediately and file a claim. Be sure to have all the necessary information, such as the other driver’s name and contact information, the police report, and any documentation of damages or injuries.
- Your insurance company investigates the claim. Once you file a claim, your insurance company will investigate the accident to determine who was at fault. They’ll review the police report, gather witness statements, and possibly send an adjuster to assess the damages.
- Your insurance company pays for the damages. If your insurance company determines that you were at fault for the accident, they’ll pay for the damages up to the limits of your Bodily Injury Liability coverage. This includes medical expenses, lost wages, and other damages incurred by the other party.
- It’s important to note that Bodily Injury Liability coverage only covers injuries to other people. It does not cover your injuries or damages to your vehicle. You’ll need to purchase additional car insurance if you want coverage.
- It’s also worth noting that Bodily Injury Liability coverage only applies if you are found to be at fault for the accident. If the other party is found to be at fault, their insurance company will be responsible for covering the damages.
What Does Bodily Injury Liability Cover?
Another common question I am asked as a licensed insurance agent is about the coverage of Bodily Injury Liability. This type of coverage is designed to cover the cost associated with injuries to other people that you cause in an auto accident. This can include:
Medical expenses include the cost of hospital stays, surgeries, medications, and other medical treatments due to the accident.
If the other party cannot work due to injuries sustained in the accident, Bodily Injury Liability coverage can help cover their lost wages.
In addition to medical expenses and lost wages, Bodily Injury Liability coverage may also cover other damages incurred by the other party due to the accident. This can include pain and suffering, emotional distress, and other non-economic damages.
It’s important to note that Bodily Injury Liability coverage only covers injuries to other people. It does not cover your injuries or damages to your vehicle. You’ll need to purchase additional car insurance if you want coverage.
The coverage limits of your Bodily Injury Liability policy will determine how much your insurance company is willing to pay for the damages.
How Much Bodily Injury Liability Coverage Do I Need?
After asking me about what Bodily Injury Liability is and what it covers, my clients often ask me how much coverage they need. This depends on a variety of factors, and often varies for each person. Here are some points to consider when trying to determine how much coverage you need:
- The amount of Bodily Injury Liability coverage you need will depend on various factors, including your state’s minimum coverage requirements, financial situation, and overall risk profile.
Most states have minimum coverage requirements for Bodily Injury Liability coverage, so it’s essential to ensure you have at least the minimum range required by law. However, having more coverage than the minimum requirement is generally a good idea to protect yourself better financially.
Your financial situation determines how much Bodily Injury Liability coverage you need. Consider higher coverage limits to protect those assets in an accident if you have significant assets, such as a home, investments, or a high income. On the other hand, if you have fewer financial assets, you can get by with lower coverage limits.
Pro Tip: When choosing your Bodily Injury Liability coverage limits, it’s a good idea to speak with an insurance agent or financial advisor to help you determine the right amount of coverage for your needs.
Factors That Affect Bodily Injury Liability Coverage
As an insurance broker, my clients are often asking me about what factors influence their Bodily Injury Liability coverage and their premiums. There are a variety of factors that affect your coverage and premiums, but some of the most important are:
Type Of Car
The make and model of your vehicle can affect your Bodily Injury Liability coverage and premiums. Insurance companies may consider certain types of cars to be riskier to insure, such as sports or luxury vehicles, and may charge higher premiums for those types of cars.
Your driving history significantly impacts daily Injury Liability coverage and premiums. If you have an account of accidents or traffic violations, you may be considered a higher risk by insurance companies and may have to pay higher premiums.
Where you live affects your Bodily Injury Liability coverage and premiums. Insurance companies consider specific locations riskier, such as areas with high traffic or a higher incidence of accidents, and may charge higher premiums in those areas.
Insurance companies may also consider individual factors such as age, gender, and marital status when determining your Bodily Injury Liability coverage and premiums.
For example, younger or male drivers may be considered a higher risk and have to pay higher premiums.
As a licensed insurance agent, I am frequently asked about how my clients can protect themselves in the instance they cause an accident that injures others. I recommend considering Bodily Injury Liability coverage to cover expenses and protect yourself in the case that you cause an accident. Be sure to research and fully understand how Bodily Injury Liability coverage works and are aware of your state’s requirements before choosing a plan that works for you.