Bodily injury liability is a form of auto liability insurance. It covers the injuries the policyholder or driver causes to other drivers, passengers, or pedestrians. It also pays for the medical expenses, lost wages, and funeral expenses that may result from the injuries caused by the policyholder.
Bodily injury liability protects the policyholder in cases where they are at fault. In many states, vehicle drivers are required to purchase a liability policy. Each of the policies ‘ coverage has minimum requirements and fixed limits. These are usually stated using numbers such as 25/50.
The first number represents the maximum amount the insurance company will pay for an injured individual after deducting the policy deductible. The second number is the total amount the provider can pay for the entire incident.
What Does Bodily Injury Liability Cover?
There are specific long-term and short-term expenses that are covered under this type of liability. This insurance policy covers other drivers, passengers, pedestrians, or bystanders involved in an accident where the policyholder was at fault. In this section, we’ll list the expenses covered under bodily injury liability.
Bodily injury liability insurance covers the hospital bills, emergency care bills, and outpatient care expenses the policyholder is liable to cover. This insurance covers the medical costs and other associated costs if another driver, passenger, or pedestrian gets injured in an accident where the policyholder was a fault.
If the victim or other people involved in the accident take you to court, bodily injury liability insurance will cover the associated legal fees.
If the victim sustains injuries and is unable to work, it could result in loss of income. Bodily injury liability coverage helps to pay compensation for lost wages or earnings due to an accident where you were at fault.
Pain and Suffering
It is common for accident victims to seek compensation for emotional distress or pain resulting from their injuries in an accident. In cases such as this, bodily injury liability covers the payment for emotional distress and pain.
If you were at fault in an accident, and it resulted in fatalities, bodily injury liability coverage can help cover the victim’s funeral expenses. The preceding expenses are what’s covered under this policy type.
However, bodily injury liability does not cover any damage arising from criminal or intentional behavior. This means if you injure another individual with your vehicle intentionally, a physical injury liability coverage will not pay for the expenses as your actions constitute criminal behavior.
Also, bodily injury liability coverage does not pay for your expenses in an accident where you are at fault. It only covers other victims involved in the accident. Lastly, the policy does not cover the passengers in your vehicle.
Cost and Coverage Limits
Bodily injury liability insurance costs vary depending on the state and the insurance provider. The price also depends on other factors that are considered by the insurance provider. On average, a bodily injury liability coverage costs about $100 to $170 per month. There is a minimum coverage limit, which varies depending on the state.
Also, each coverage has a limit, which is divided into two. The coverage limit is the highest amount the provider will payout after an accident. There is a per-person limit and a per-accident limit.
The per-person limit refers to the highest amount the provider will pay per person involved in an accident. The per-accident limit is the highest amount the policy provider will pay for the entire accident, even if multiple people were injured.
If you have a high net worth, then it is advisable to purchase a bodily injury liability policy with high coverage limits, though it will cost more. However, your insurance provider will pay more in the event of an accident.
If you have enough assets, you may be at financial risk if you purchase a policy with low coverage limits. This means the victim can sue you to court to cover the remaining damages, and your assets will be at risk.
Each state has a minimum coverage limit you must purchase. In Indiana, the minimum is $25 000 per person and $50 000 per accident.
Contact an Experienced Attorney at Stewart|Phelps|Wood Today!
If you were involved in an accident and want to make injury claims, you will need an experienced lawyer’s services to help you get the maximum compensation you deserve. Contact a personal injury attorney at Stewart|Phelps|Wood today for legal assistance and to schedule a free consultation.