Jane Dotson
If you cause a car accident that results in injuries to others, bodily injury liability coverage can help pay for the injured parties' medical expenses and lost wages. This type of insurance is typically included in most auto insurance policies and is required by law in most states. It can also help cover legal fees if you are sued for damages. The coverage limits are usually displayed as a per-person and per-accident maximum, such as $25,000/$50,000, and you should ensure your coverage is sufficient to protect your assets in the event of a lawsuit.
| Characteristics | Values |
|---|---|
| What is covered | Medical expenses, lost wages, funeral costs, pain and suffering, legal fees |
| Who is covered | Other drivers and their passengers, passengers in your car who are not from your household |
| Who is not covered | You, your passengers (in some states) |
| Required by law | Yes, in most states |
| Minimum coverage | Varies by state, e.g. $25,000 per person in Pennsylvania |
| Coverage limits | Typically shown as "number/number" or "number/number/number", e.g. "100/300" or "100/300/100" |
| How to choose coverage | Aim for a BI limit that matches your net worth or the highest limit you can afford |
What You'll Learn
Bodily injury liability insurance covers medical expenses
Bodily injury liability insurance is a type of insurance coverage that pays out if you injure someone else in a car accident that was your fault. It can also protect your assets if you are sued. It covers the other driver's medical expenses, as well as those of their passengers, but not your own. It can also cover lost wages if the injured party is unable to work after the crash.
Bodily injury liability insurance is legally required in most states, although there are exceptions. For example, in Alaska, you can opt out of car insurance if you live in a remote area. In New Jersey and Florida, bodily injury insurance is not required, but other types of insurance are necessary to drive legally.
Bodily injury liability insurance policies have limits on how much will be paid per person injured and per accident. These limits are typically expressed as three numbers, such as "100/300/100". The first number is the maximum amount that the insurance provider will pay for injury expenses for any individual involved in the accident. The second number is the maximum amount the provider will cover for all people involved in the accident. The third number is the property damage limit.
The cost of bodily injury liability insurance varies based on the driver, how much coverage they purchase, and their state and driving history. It is recommended that drivers have enough coverage to protect their assets in case they cause a severe accident.
Gap Insurance: Can I Cancel?
You may want to see also
It also covers lost wages
Bodily injury liability coverage is a critical component of auto insurance policies, providing financial protection in the event of an accident where you are at fault. This coverage extends beyond medical expenses to also include lost wages for those injured, which is an often-overlooked aspect of the recovery process.
Lost wages are a crucial consideration when it comes to the financial impact of an injury. If someone is unable to work due to their injuries, they can claim compensation for their lost income. This applies not only to physical injuries but also to psychological injuries, such as PTSD, that may arise from the accident. It's important to note that the injured person needs to provide proper documentation to support their claim for lost wages.
The coverage for lost wages extends to passengers in your vehicle who are not from your household, as well as other drivers and their passengers. This means that if any of these individuals are unable to work due to their injuries, they can seek compensation for their lost income through your bodily injury liability coverage.
In addition to lost wages, bodily injury liability coverage also includes medical expenses, funeral costs in the unfortunate event of a fatality, and legal fees if a lawsuit arises from the accident. It's important to review your policy carefully to understand the specific coverage limits and exclusions.
When it comes to lost earning capacity, the situation becomes a bit more complex. If an individual is left with a long-lasting or permanent disability that affects their ability to earn an income, they may be able to claim damages for lost earning capacity. This can be challenging to prove, and it may require expert financial or economic witnesses to estimate the financial impact of the disability on the individual's future earnings.
Auto Insurance and Massage: Unwinding the Stress of Accidents
You may want to see also
It can cover legal fees
If you are involved in a car accident and are found to be at fault, bodily injury liability insurance can cover your legal fees if you are sued as a result of the accident. This includes legal defence fees, court costs, judgments and settlements, up to your policy limits. This is in addition to the medical costs of those injured in the accident, including emergency care, hospital fees, follow-up care, and any necessary medical equipment.
Bodily injury liability insurance usually has two separate coverage limits: a per-person limit and a per-accident limit. The per-person limit is the maximum your insurance provider will pay per person, while the per-accident limit is the maximum your policy covers per accident for everyone involved. For example, if your policy has a per-person limit of $100,000 and a per-accident limit of $300,000, and you cause an accident that results in $180,000 worth of injuries for three people, your insurance will cover everything except for $10,000, which is the amount that exceeds the per-person limit.
It's important to note that bodily injury liability insurance won't cover your own medical costs or damage to your own vehicle. If you want coverage for your own medical expenses, you may need to purchase personal injury protection or medical payments (MedPay) coverage, depending on your state. If you want coverage for car repair bills, you'll need to buy collision insurance
Bodily injury liability insurance is required in most states, and it's a good idea to make sure it's included in your auto insurance policy. Even if it's not required in your state, maintaining basic coverage is still a smart decision.
Gap Insurance: Is My Vehicle Covered?
You may want to see also
It pays out if you injure someone in an accident that was your fault
If you injure someone in a car accident that was your fault, bodily injury liability coverage will pay out for any medical costs that you are responsible for as the at-fault driver. This includes emergency care services, hospital fees, follow-up visits, medical equipment, and ongoing care costs. It also covers lost wages if the injured person is unable to work after the crash.
Bodily injury liability coverage can also cover funeral costs if the injuries from the accident are fatal. In some cases, it may also cover claims involving emotional stress or prolonged pain from the accident. Additionally, this type of coverage can help pay legal fees and legal counsel if the injured party sues you for damages.
Bodily injury liability coverage is a standard part of most auto insurance policies and is required by most states. However, it is still important to review your policy to ensure that you have the necessary coverage. The minimum amount of bodily injury liability coverage required may vary depending on your state, so it is a good idea to check the specific requirements for your location.
The liability limits on your insurance policy will typically be shown as a set of three numbers, such as "100/300/100." The first number represents the per-person bodily injury liability coverage, the second number is the per-accident bodily injury liability coverage, and the third number is the per-accident property damage liability coverage.
When choosing your bodily injury liability coverage limits, consider selecting a limit that matches the value of your assets or the highest limit you can comfortably afford. This is because if your insurance coverage is not sufficient to pay for the damages you cause, the injured party may take legal action against you to recover the remaining amount.
Liability Insurance: Does it Cover Other Vehicles?
You may want to see also
It can cover funeral costs
Bodily Injury Liability Coverage (BI) is an essential component of your auto insurance policy. It provides critical protection in the event of an accident where you are at fault, and it is required in most states. While the financial costs of an accident are likely to be the last thing on your mind during such a traumatic event, it's important to know what expenses your insurance will cover.
In the tragic event that an accident results in a fatality, your insurance policy's BI coverage can help ease the financial burden on you and your family by covering funeral costs. This includes expenses such as burial or cremation expenses, transportation of remains, and other preparation costs.
The average funeral costs between $7,000 and $12,000, with cremation funerals averaging $6,000 to $7,000. These costs can place a significant strain on your finances, so it's essential to understand your insurance coverage and ensure you have adequate protection.
While BI coverage can help with funeral costs, it's important to note that it has limits. The coverage limit per person and per accident will vary depending on your policy and the state you live in. Additionally, BI coverage only applies if you are at fault for the accident. If another driver is at fault, their BI coverage should cover your expenses, but it may take time for their insurance company to process the claim.
To ensure you have the necessary protection, review your auto insurance policy carefully and consider increasing your coverage limits if needed. By doing so, you can have peace of mind knowing that you are financially protected in the unfortunate event of an accident resulting in a fatality.
Rider Insurance: Vehicle Add-Ons Covered
You may want to see also
Frequently asked questions
Bodily Injury Liability Coverage (BI) is included in most auto insurance policies and is required by most states. It covers the medical expenses and lost wages of those injured in an accident where you are at fault. It also covers legal fees if you are sued for damages.
Bodily Injury Liability Coverage covers the medical expenses of other people involved in an accident where you are at fault. Personal Injury Protection (PIP) covers your own medical expenses and those of your passengers, regardless of who is at fault.
The amount of coverage you need depends on your state's requirements and your personal financial situation. Most states set a minimum requirement, such as $25,000 per person. You may want to consider purchasing coverage that matches your net worth or the total value of your assets to ensure you are fully protected in the event of an accident.
