What does bodily injury liability insurance cover?
What’s covered and not covered by bodily injury protection varies depending on your policy and state regulations. That being said, there are a few things that are usually covered under this type of coverage:
Medical expenses: This includes hospital bills, doctor’s visits, physical therapy, and other ongoing care.
Loss of income: If someone can’t work because of an injury you caused, your insurance will cover all or part of their wages directly lost due to the accident.
Pain and suffering: Some states allow people to sue for pain and suffering, which is the recuperation of losses due to psychological pain or a chronic physical condition.
Funeral costs: If someone dies as a result of an accident you caused, your insurance can help cover the costs of a funeral.
Legal fees: If you’re sued by someone injured in an accident you caused, liability coverage will pay for your legal defense and court costs.
Keep in mind that your liability protection may not cover you if you were breaking the law. For example, driving under the influence of alcohol or drugs can void your insurance. Exclusions like this should be listed in the “exclusions” section of your policy documents. Be sure to ask questions about exclusions if you’re unsure how your policy works.
Who is covered by bodily injury protection?
Bodily injury protection covers medical costs for the people you injure in an at-fault accident. That includes:
But there’s one person who’s not on this list: you. In most cases, you are not covered by your bodily injury protection coverage. Depending on state laws, your medical bills can be covered by:
If you live in a no-fault state, the injuries to passengers in your car may be covered by PIP insurance.
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What are the coverage limits for bodily injury liability insurance?
The coverage limits for bodily injury protection vary according to the policy. Every policy will state its exact limits, both the limit per injured person and the limit per accident. These limits are represented most often this way:
Bodily injury coverage per person / Bodily injury coverage per accident
If your bodily injury coverage limits are “25/50,” you’re covered for $25,000 of bodily injury protection per person and $50,000 of bodily injury protection per accident. So, if three people sustain damages of $25,000 (for a total of $75,000), you’re stuck covering a third of those costs. Even though each person’s loss is within your coverage limit, the total loss exceeds the total coverage limit per accident.
What is the difference between bodily injury and property damage liability?
Bodily injury liability covers losses related to the damage you’ve caused to another person’s body while driving your car. Damages can include physical and psychological harm.
Property damage liability insurance is the final piece of liability protection. It covers losses related to the damage you’ve caused to property. That can include another person’s car, home, and other belongings. It doesn’t cover damages to your property—you need collision coverage and comprehensive coverage for that.
Both coverage types come with their own coverage limits and fine print about what is and isn’t covered. The reason you see property damage combined with bodily injury is because they’re both part of liability insurance—the type of insurance that protects you when you make a mistake. Liability insurance coverage limits are split limit, represented shorthand this way:
Bodily injury coverage per person / Bodily injury coverage per accident / Property damage liability coverage
So a “100/300/100” policy covers you for $100,000 of bodily injury liability per person, $300,000 of bodily injury liability per accident, and $100,000 of property damage liability.
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