What is bodily injury liability car insurance?

Car insurance packages are designed so as to cover different scenarios. Just because another person has a certain type of car insurance coverage doesn’t mean that you have to get the same exact type as well.

You have to analyze your driving habits and needs before you choose the type of car insurance coverage to purchase. You also need to know your state’s minimum requirements so as to meet them when purchasing insurance for your car.

One of the most common types of car insurance coverage is bodily injury liability car insurance. In fact, bodily injury liability coverage is required in most states. This type of coverage means that the insurance will pay for other people’s injuries or deaths for which you are responsible. In addition to this, the insurance will also cover legal fees in case the other party involved in the accident files a case against you. Possible claims covered by bodily injury are medical bills, loss of wages or income, and even pain and suffering. It is important to note that this coverage does not include you or your vehicle.

Bodily injury liability coverage also includes pedestrians. If you are unfortunate enough to be involved in such an accident, your bodily injury liability insurance will cover the expenses incurred. The other party need not be in any vehicle.

This type of coverage will protect you financially by taking on the expenses per person in any accident. There is, however, a limit as to how much the insurance company will pay for per accident. In insurance terms, the coverage is indicated by a “split limit”. For example, the insurance company will pay up to $50,000 per person injured in the accident and it will pay up to a total of $100,000 for the whole accident. Any costs beyond that would be for you to shoulder.

When taking out bodily injury liability car insurance, you should take your personal assets into consideration. If you do not have too many assets and your income is not that high, then a 50,000/100,000 split would be adequate. However, if you have a lot of assets at stake, you should consider a higher split value, say 100,000/300,000 coverage. If you take out a smaller amount than you need in the future, then you would end up having to shoulder the extra expenses incurred during the accident. That might mean having to sacrifice your assets as you would have to come up with the cash needed to pay for the other party’s needs.