Bodily Injury Liability

All states require you to carry some level of Bodily Injury Liability Coverage on your insurance policy.  Most people buy the insurance, but don’t read through their policies after purchasing them and file them away in some folder labeled Insurance.  And then they are never to be seen again until there is in accident.   However, you should be aware of the coverage you are purchasing, what it will pay for in the event of an accident, and have the peace of mind knowing it will cover your liabilities. 

In basic terms, Bodily Injury Liability Coverage is a type of automobile insurance coverage that pays in the event you cause injuries to others because of an accident.    Even minor or low velocity impacts can cause an injury, and you would be personally liable for their medical bills if you did not carry Bodily Injury Liability Coverage on your insurance policy.  This could amount to thousands of dollars, especially if the injured person were taken to the hospital from the scene of an accident in an ambulance.

The thing to understand about Bodily Injury Liability Coverage is that it is a third-party coverage.  It does not pay for your injuries or medical bills.  There may be coverage for your passenger’s injuries, but there are exceptions.  First of all, Bodily Injury Liability Coverage on some insurance policies does not apply to residents of your household.  Sometimes there are also exclusions in coverage for relatives.  If you desire coverage on your insurance policy for injuries for individuals within your own vehicle, you need to purchase what is called Medical Payments or PIP (depending where you live) 

To illustrate, say you accidentally run a stop sign and cause an accident.  Your sister, a  resident of your household, was in your vehicle, and there were two people in the other vehicle.  Your Bodily Injury Liability Coverage would only pay for injuries to the two people in the other car.  It would not cover your sister’s because she is a resident of your household.  If instead your passenger was a friend from work, their injury would likely be covered because they are not a member of your household. 

Another consideration of Bodily Injury Liability Coverage is your policy limits.  The state requires you to carry a certain limit of coverage.  It is usually broken down in dollars per person with a maximum per accident, but the minimum limit for most states is not high.    Choose your limit for Bodily Injury Liability Coverage carefully; make sure it is enough to protect you financially should there be a catastrophy.  You would not want to be in a situation where you were liable for someone injuries and your insurance coverage was insufficient.  This could result in getting sued and having a judgment against you.

The state requires us to carry the insurance to drive our automobiles, so we abide by the law and buy the insurance.   Having read this article, you will now be educated on the importance of Bodily Injury Liability Coverage, what it will pay for in the event of a car accident, and to chose a limit of coverage high enough to protect you.