What Bodily Injury Liability Covers & How it Works
Bodily injury liability is an important part of any car insurance policy. Bodily injury liability insurance protects a driver from the costs of hurting other people in automotive accidents. To ensure their financial security, drivers should know what bodily injury liability covers and how it works.
What it Covers
Body injury liability insurance covers the medical costs that may result from injuries obtained by passengers in your car and other cars involved in an accident. In the event of a lawsuit, bodily injury liability will also cover legal fees and courtroom costs. It does not cover injuries to the policy holder or anybody else that is under the same auto liability insurance plan.
How it Works
Depending on the insurance company and the specific car insurance terms, the types and amounts of bodily injury liability coverages can vary. Generally, auto insurance companies offer bodily injury liability coverage between $50,000 and $500,000. These coverages can be distributed in specific ways For example, a plan may cover up to $100,000 per injured person with a cap of $300,000 per accident. Another plan may offer $250,000 of coverage per person and $500,000 of coverage per accident. Drivers should also make note of any possible deductibles that must be paid. Many states have minimum requirements for bodily injury liability, so be sure to do some research to find out about the specific requirements for your state.
Why You Need it
If you drive a car, you need bodily injury liability insurance. It is a mandatory part of car insurance in most states, and for good reason. Medical costs and legal fees resulting from automotive accidents can be very expensive and can easily threaten a person's assets and financial well-being. If the amount a driver owes for bodily injury and/or legal fees exceeds the coverage provided by their policy, they will be forced to spend money from their savings or liquidate assets to pay their debts. Even if an accident appears to not be your fault, you may have to battle to prove your case in the courtroom. Thus, it is wise to purchase a car insurance policy that includes enough bodily injury liability coverage to protect your assets and maintain your financial security in the case of a severe accident or a trying legal dispute.
Bodily injury liability insurance is a major component of any car insurance policy. Without it, a driver may not be legally qualified to drive in their state and will also face huge financial risks in the event of an accident. If a driver's bodily injury liability coverage is too low and inadequate, he or she will have to cover the additional costs out-of-pocket. So, to be a responsible and smart driver, you should definitely take the time to purchase a car insurance policy that offers the proper amount of bodily injury liability protection for you and your family.