What Is a Bodily Injury Liability Insurance Coverage & How Does It Work?

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A bodily injury liability insurance coverage will assist in defending you in a car accident in which you are legally at fault and caused harm or death to someone. It will financially make up for whatever injury you inflict on the victim, together with any additional losses brought on by that harm.

This post will discuss bodily injury liability insurance, including how it works, what it covers, as well as its limits and costs.

 

What Does Bodily Injury Liability Insurance Cover?

Medical Expenses

This insurance helps cover harm you caused to the victim, including emergency services and hospital care. Additionally, it might assist in necessary follow-up medical visits and other associated costs, such as medication, crutches, and recovery wheelchairs.

 

Lost Wages And Income

The other driver may require months of physical treatment as part of their recovery if they are injured in a collision with your vehicle. In the worst case, the injured party loses money or income because he cannot carry out his regular job duties. In this case, bodily injury liability insurance could assist in covering their compensation. However, your state’s legislation will determine the payment amount.

 

Legal Fees

After an accident, the injured party may take you to court. You would need to hire an attorney, which is reasonably costly. Bodily injury liability insurance comes in handy by paying for your defense costs.

 

Funeral Expenses

Bodily injury liability insurance covers medical expenses and burial expenses in the event of a fatality. Up to the policy limit, the bodily injury liability coverage pays for funeral expenses in your at-fault accident. Before that, however, the insurance companies must complete investigations to establish who was to blame for an accident before they pay out anything.

 

Who Does Bodily Injury Liability Insurance Cover?

In case you are found to be at fault for a car accident, and someone is hurt, the victims can be covered by bodily liability insurance. The injured party includes:

  • A pedestrian
  • A driver or passengers in a different vehicle
  • Passengers in your vehicle who are unrelated to the collision

 

Notably, this coverage does not pay for your lost wages, family medical expenses, or personal medical bills. However, if the injured sue you due to an accident you caused, it may help cover your legal fees.

 

Bodily Injury Liability Coverage Limits

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State laws frequently specify a minimum liability coverage limit. There are two typical coverage limits for bodily injury liability policy: the per-person limit and the accident limit.

 

Per-Person Limit

Each person hurt in your at-fault accident is subject to the per-person limit, with the maximum amount being $50,000 for each. Therefore, your policy will only cover up to $50,000 of their total medical costs if an individual is injured.

If an accident results in the injuries of two or more persons, but the policy contains a $50,000 per person limit, the insurance company will pay no more than $50,000 to each victim.

 

Per-Accident Limit

Each accident involving numerous injuries is subject to the per-accident limit. For example, suppose you have a $50,000 per accident limit. This implies that if you cause a car accident and no matter how many individuals are injured, your insurance will only cover a maximum of $50,000 for the total costs.

 

How Does Bodily Injury Liability Insurance Work?

You should notice that you will be responsible for paying out-of-pocket for the remaining costs if the injured party’s medical expenditures exceed your coverage limits. Therefore, assessing how much bodily injury liability coverage is suitable for your particular circumstances is crucial. You may also wish to buy limits that are greater than those mandated by your state.

Usually, once the accident occurs, the victim will make a physical injury claim that contains details regarding:

  • The incident’s date
  • How the accident occurred
  • Soft tissue injuries, including tendons, ligaments, or skin damage
  • Severe injuries, including joint or head trauma or shattered bones
  • Whiplash
  • Permanent injuries
  • The diagnosis
  • The duration of treatment and recovery

 

Cost of Bodily Injury Liability Coverage

The price of bodily injury liability insurance is affected by several variables, such as your residence, driving record, desired level of coverage, and more.

For instance, if you reside in an area where accidents are frequent, your insurance may cost more. Or, your rate will probably be costly if you have been involved in more accidents than someone with a clean driving record. Furthermore, if you’re a novice driver, you run a higher risk of being involved in accidents and are more likely to pay extra for liability insurance.

Besides, the more coverage you buy, the higher your premium will increase. Therefore, you should carefully conduct your research and seek advice from your insurance provider to choose the limits, deductibles, and coverages that are best for you.

 

If you have any questions about bodily injury liability insurance coverage, please get in touch with us to receive a free consultation. 

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