Bodily Injury Liability Insurance: The Cost and What it Covers

Bodily injury liability insurance helps in settling a person’s injury following a car accident if you happen to be at fault. It is among the two types of liability auto insurance. On the other hand, property damage liability caters for damages that you may cause to the car of the other driver. Both types of liability car insurance have minimum requirements based on your current state.

bodily injury insurance


This article examines what is bodily injury liability, the cost, and what you are supposed to have.

What does it cover?

Bodily injury insurance covers a part of both short- and long-term expenses following an accident. It covers passengers, pedestrians, or bystanders who might have been injured. The following are examples of what is covered by bodily injury insurance liability:

Medical expenses
These include hospital fees and emergency care expenses incurred following an accident. It can also cover equipment costs like wheelchair or crutches and follow-up visits for some claims.

Legal fees
The other party may file a case against you following an accident. Bodily injury insurance normally covers legal defense costs and can also defray court costs.

Loss of income
If the other party suffers an injury that interferes with his/her ability to work, bodily injury insurance should compensate for all that time period.

Pain and suffering
It can be very tricky to quantify the cost of pain and suffering. However, the other party can demand repayment for emotional distress or lingering pain resulting from the injuries.

Funeral expenses
If fatalities occur, bodily insurance coverage should assist to pay for funeral expenses.

How does bodily injury insurance liability work?

There are two types of liability insurance packages which are combined single limit policies and split limit policies. For combined single limit policy, it is supposed to offer a certain amount of coverage, and it allows you to decide how to divide the coverage for property damage and bodily injury.

If you opt for a split limit policy, two numbers are involved. The first one is limit per person. This represents the maximum amount that is paid by your insurance provider for expenses related to the injury to a single person. The second number represents limit per accident. It is the maximum amount an insurance provider will cover for all those people who are involved in an accident.

Some split limit policies have a third number which represents the limit for property damage liability coverage.
What does bodily injury insurance liability require?

You are supposed to carry a minimum amount of bodily injury and property damage liability insurance depending on your State. However, there is exception to the rule of state-mandated insurance. A number of states allow drivers to insure themselves as a way of demonstrating they are capable to meet any expenses that result from an accident. Examples include depositing a large amount of savings with the state or posting a bond. For instance, New Hampshire doesn’t require drivers to carry insurance if you have significant funds at your disposal in case of an accident. However, you can still opt for an insurance coverage but you must meet all the minimum requirements.

How much does bodily injury insurance liability cost?

When figuring out the bodily injury insurance you want to purchase, it is advisable to know the cost of additional coverage above the minimum requirement. You can compare personalized quotes from different insurance companies. The insurance costs may vary depending on your driving experience and past records. Someone with a clean driving license may pay less than a driver with a recent accident or traffic violation record.

How much coverage should you buy?

In 2012, a bodily injury claim was about $14,600. However, your cost can spiral if you are found to be responsible for a car accident that led to injuries or fatalities. If the expenses happen to be above the limit of your insurance provider, the other party can demand for a balance and put your assets at risk.

It is strongly recommendable to buy the most coverage you can manage. This will protect your assets and give you peace of mind that your insurance will meet all the expenses in case you make an accident. At any time, ensure that you are covered at least by the minimum limit that is required by your state.