Bodily injury liability insurance is an important part of car insurance that gives you financial assistance if you are involved in an accident and injure other people. It pays for medical costs, lost income, and attorneys’ fees if you are sued. Drivers in most states in America are required by law to have a minimum level of bodily injury liability coverage so that victims of accidents receive adequate compensation.
What Does Bodily Injury Liability Insurance Cover?
Bodily injury liability insurance helps cover various costs associated with injuries sustained by others in an accident where you are at fault. Coverage typically includes:
1. Medical Expenses
- Hospital bills, surgery, and medical treatments for injured parties
- Emergency room visits, ambulance fees, and rehabilitation costs
- Prescription medications and ongoing medical care
2. Lost Wages
- Compensation for lost income if the injured party is unable to work
- Future lost earnings if the victim suffers a long-term or permanent disability
3. Pain and Suffering
- Compensation for physical pain and emotional distress caused by the accident
- Psychological trauma, including anxiety, PTSD, and depression
4. Legal Fees and Court Costs
- Attorney fees if you are sued for damages
- Settlement costs if the case is resolved out of court
- Court-ordered compensation if a lawsuit results in a judgment against you
5. Funeral Expenses
- Coverage for funeral and burial costs in the event of a fatal accident
What Is Not Covered by Bodily Injury Liability Insurance?
While bodily injury liability insurance provides essential coverage, it does not cover:
- Your own injuries – Personal injuries are covered by medical payments (MedPay) or personal injury protection (PIP).
- Property damage – Damage to vehicles, buildings, or other property is covered by property damage liability insurance.
- Intentional harm – Injuries caused by deliberate actions are not covered.
- Injuries to passengers in your vehicle – Coverage varies depending on the insurance policy and state regulations.
How Much Bodily Injury Liability Coverage Do You Need?
Most states require a minimum amount of bodily injury liability insurance, but the required limits are often too low to cover serious accidents. It is advisable to carry higher coverage limits to protect your assets and financial stability.
Typical Coverage Limits
Bodily injury liability insurance is usually represented as a split limit, such as:
- $25,000/$50,000 – Covers up to $25,000 per person and $50,000 per accident.
- $50,000/$100,000 – Covers up to $50,000 per person and $100,000 per accident.
$100,000/$300,000 – Covers up to $100,000 per person and $300,000 per accident.
Choosing the Right Coverage Amount
When selecting bodily injury liability limits, consider:
- State requirements – Make sure you meet your state’s minimum coverage limits.
- Potential medical costs – Severe accidents can result in six-figure medical bills.
- Personal assets – If the damages exceed your coverage, you may be personally responsible for the remaining costs.
Legal risks – Higher limits can help protect you from lawsuits that could threaten your financial security.
Bodily Injury Liability vs. Other Types of Coverage
Bodily injury liability insurance is different from other types of auto insurance coverage:
- Bodily Injury Liability – Covers injuries to other people when you are at fault.
- Property Damage Liability – Pays for damage to another person’s property (e.g., vehicles, buildings).
- Personal Injury Protection (PIP) – Covers medical expenses for you and your passengers, regardless of fault.
- Medical Payments (MedPay) – Helps pay medical bills for you and your passengers.
What Happens If You Don't Have Bodily Injury Liability Insurance?
Failing to carry bodily injury liability insurance can result in severe consequences, including:
- Legal penalties – Most states impose fines, license suspension, or other penalties for driving without proper coverage.
- Personal liability – You may have to pay out of pocket for medical expenses and damages if you cause an accident.
- Lawsuits – Victims can sue you for damages, potentially putting your assets, wages, and savings at risk.
Higher insurance costs – Driving without insurance can result in higher premiums when you purchase coverage later.
How to File a Bodily Injury Liability Claim
If you are involved in an accident and need to file a bodily injury claim, follow these steps:
1. Report the Accident
- Notify your insurance company as soon as possible.
- Provide details about the accident, including time, location, and parties involved.
2. Gather Evidence
- Take photos of the accident scene, vehicles, and injuries.
- Collect witness statements and obtain a copy of the police report.
3. Cooperate with Investigations
- Your insurance company will investigate the accident and determine liability.
- Provide necessary medical records and documents requested by the insurer.
4. Negotiate a Settlement
- Your insurance provider will negotiate with the injured party’s attorney or insurer.
- If an agreement is reached, a settlement will be paid to cover damages.
- If a lawsuit is filed, your insurer will provide legal representation.
How to Lower Your Bodily Injury Liability Insurance Premiums
While bodily injury liability coverage is essential, there are ways to reduce your insurance costs without compromising coverage:
1. Increase Your Deductible
- Opting for a higher deductible can lower your monthly premium.
2. Bundle Insurance Policies
- Many insurers offer discounts for bundling auto, home, and other insurance policies.
3. Maintain a Clean Driving Record
- Safe driving can qualify you for lower premiums and discounts.
4. Take Defensive Driving Courses
- Some insurance providers offer discounts for completing certified defensive driving courses.
5. Shop Around for the Best Rates
- Compare quotes from different insurance providers to find the most affordable coverage.
About the Author
Neil Bhartia
Neil Bhartia isn’t your typical, stuffy attorney that you see on TV. While some have their sights exclusively on money and treat their clients like a number, Neil takes a personal interest in every single client he has. As an empath, Neil understands that people that seek legal help are typically in an involuntary, and stressful situation, and he goes out of his way to diffuse the stress and educate clients on each every detail of the legal process.
