Bodily injury car insurance coverage is a liability coverage that pays for the medical expenses, lost wages, legal fees, and other injury-related costs of others if you cause a car accident. It only covers injuries to other drivers, passengers, or pedestrians you harm—not your own injuries. The coverage typically has two limits: a per-person limit (the maximum amount paid for one person's injuries) and a per-accident limit (the maximum amount paid for all injuries in a single accident). For example, a "25/50" bodily injury limit means up to $25,000 per injured person and $50,000 total for all injured persons in one accident. If claims exceed these limits, the policyholder may be responsible for the extra costs. This coverage also often pays for your legal defense if sued by the injured party.
How Bodily Injury Coverage Works
- If you are at fault in an accident, your bodily injury liability insurance pays toward the medical bills, lost income, pain and suffering, and funeral costs of the injured third parties.
- It does not cover your own injuries or your own passengers' injuries; those are covered by personal injury protection (PIP) or medical payments coverage.
- The coverage limits are usually expressed as two numbers indicating per-person and per-accident maximum payouts.
- If many people are injured, the total payout cannot exceed the per-accident limit.
- If the injured parties' damages exceed coverage limits, they may pursue you personally for the remaining costs.
Importance of Bodily Injury Coverage
Bodily injury liability is required by law in most U.S. states as proof of financial responsibility. It's essential to carry adequate coverage to protect against potentially significant financial loss if found at fault in an accident causing injury to others. Many experts recommend purchasing higher limits than the minimum required by law for better protection.
In summary, bodily injury coverage in car insurance protects you financially if you cause injuries to others in a car accident by paying their related expenses up to the coverage limits stated in your policy.
