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What is Bodily Injury Liability Insurance? What Does it Cover?

What is Bodily Injury Liability Insurance?

Bodily injury liability (BI) is a type of insurance that pays for injuries and medical bills you cause to others in an accident. It’s included in most car insurance policies and is required by most states. 

Bodily Injury Liability Coverage (BI) is the part of your insurance that helps pay for injuries to others if you’re at fault for an accident. It can also help pay for legal fees if you’re sued for damages.

In general, BI is one of the coverages required by most states and is included in most car insurance policies. That being said, it’s still a good idea to make sure it’s part of your policy.

This is a subset of liability coverage. Bodily injury liability pays for injuries you cause to others in an accident. Protecting yourself from hefty medical bills and legal fees is a must-have.

Bodily Injury Liability can help pay the cost of your legal defense and any associated court fees if the other party sues you. For an at fault accident, Bodily Injury Coverage can help pay expenses for others injured in the accident if they have to miss work or can’t work due to their injuries.

In some cases, claims may involve payment when there is emotional stress or prolonged pain from an accident.

In the unfortunate event that an accident results in a fatality, Bodily Injury Liability coverage will help pay for any related funeral costs.

What does bodily injury liability insurance cover? 

Bodily injury liability insurance covers medical bills, lost wages, legal fees if you’re sued, and compensation for pain and suffering for others injured in an accident where you’re at fault. It applies to drivers or passengers in another vehicle, pedestrians, or unrelated passengers in your car.

This coverage does not cover your own or your family’s medical expenses or lost income. However, it may help with legal costs if you’re sued for an accident you caused.

When does bodily injury liability apply? 

  • If you’re at fault in an accident
  • If you’re sued for damages

How much insurance coverage should I have?

  • You should have enough coverage to drive legally in your state
  • Some experts recommend having limits of at least $100,000/$300,000
  • You may want to have enough coverage to cover your net worth

Depending on where you live, your state may have a minimum Bodily Injury Liability requirement to register your vehicle.

It’s important to note, that even though your state may set a limit, it may not be enough. When shopping for insurance, it’s a great time to make sure you’re protected.

What happens if I don’t have enough coverage? 

  • You may still be responsible for paying for the other person’s injuries
  • The other driver may sue you, which could put your assets at risk

What are bodily injury liability insurance limits?

In general, BI limits are broken into 2 parts. This is often shown as a “number/number” (ex., 100/300).

Here, the numbers are:

  • In the thousands
  • 1st is the per person limit
  • 2nd is the per accident limit

So for example 100/300, would be:

  • $100,000 per person
  • $300,000 per accident

Per person. The most your Bodily Injury Coverage would pay per person. This is also limited by the per accident total.

Per accident. The most your Bodily Injury Coverage would pay per accident. So no matter how many people are injured, this is the most your policy would pay for injuries you cause.

FAQ

What does bodily injury liability insurance cover?

Bodily injury liability insurance pays for medical expenses, lost wages, legal fees, and pain and suffering for others injured in an accident where you’re at fault. It applies to drivers or passengers in another vehicle, pedestrians, or unrelated passengers in your car.

Does bodily injury liability insurance cover my medical expenses?

No, this coverage does not pay for your medical bills or lost income if you cause an accident. It only covers injuries to others. For personal medical expenses, you may need personal injury protection (PIP) or medical payments coverage (MedPay).

Will bodily injury liability insurance cover legal costs if I’m sued?

Yes, it can help pay for legal expenses if you’re taken to court over an accident you caused. This may include attorney fees, settlements, or court judgments up to your policy limits.

Is bodily injury liability insurance required by law?

Most states require drivers to carry a minimum amount of bodily injury liability coverage. The required limits vary by state, and higher limits can provide better financial protection.

How much bodily injury liability coverage should I get?

State minimums may not be enough to cover serious accidents. Higher limits can protect you from out-of-pocket expenses if damages exceed your coverage. Many experts recommend at least $100,000 per person and $300,000 per accident.