Did you know that the insurance industry estimates that, on average, a driver will be involved in an auto accident at least once every 18 years? That, unfortunately, is out of your control!
Driver Knowledge says that about 6 million car accidents happen every year in the United States. Many of these incidents are not fatal. But, thousands of people do die every year. These deaths caused by car accidents are most often caused by human error.
Are you interested to know what is covered under your new auto insurance? Let’s take the time to understand what is bodily injury liability when an accident happens.
What is Bodily Injury Liability?
When you are legally responsible for a car accident, bodily injury liability aims to compensate for the cost of injuries to your passengers, and the driver and passengers of the other vehicles involved, if any. It will also cover expenses for pedestrians that are involved in an auto accident.
If you are taken to court by any of the injured people, it will also help pay for legal fees that you will incur.
Taking auto insurance coverage gives you peace of mind that you have the financial means to help cover the cost of the process of healing for someone to get back to a normal life.
Do I Need Bodily Injury Coverage?
When choosing bodily injury liability coverage, usually, each state has a law that prescribes a minimum liability ceiling at which drivers must buy for. It is a good idea to review the criteria your state needs. Then work with your insurance provider to decide how much coverage is acceptable. You should also bear in mind that you will be able to purchase additional coverage by increasing your liability limits.
In North Carolina, for example, they allow the drivers to retain a minimum standard of liability insurance coverage. For bodily injury to one person, the amount of $30,000. For bodily injury to two or more people $60,000 and $25,000 for property damage.
Finally, if you hurt someone, and their medical bills surpass the limits of your liability coverage, you will have to pay out the remaining costs out of your pocket. That is why you may want to take extra coverage.
Driving without valid car insurance or proof that you are financially able to cover costs is illegal. That can have serious repercussions. That is both with the people injured and with the law.
Driving without car insurance will incur penalties. These are guidelines as to these penalties:
- $50 for a first-time lapse
- $100 for a second-time lapse
- $150 for the third-time lapse and each subsequent lapse thereafter
What Does Bodily Injury Liability Cover?
If you are the guilty party in a car accident, your auto coverage helps cover short-term and long-term costs related to injuries sustained in the accident. These include:
Medical Expenses
Helps cover costs incurred like emergency care in situ, hospital fees, and follow up visits. It will also cover medical equipment needed for the recovery of injuries, such as crutches and wheelchairs.
Pain and Suffering
If the injured person suffers from physical pain or emotional suffering that lasts over a long period, your liability coverage will help pay compensation to the injured person.
Loss of Wages
If the injured person cannot earn a salary due to the injuries sustained in the accident, auto coverage can help compensate for their loss of wages during that period.
Legal Fees
It may well be that the person files a lawsuit against you. Money may be tight on your part, so this coverage can help with the payment of these fees.
Funeral Costs
Sometimes the car accident has fatalities. Bodily injury liability will help towards funeral costs.
Bodily Injury Liability Coverage, How Much Do I Need?
Remember that each state has its own minimum requirements, but you have the option to increase these limits. A recommended limit is at least between $50,000 and $100,000 or more. It’s your choice.
Per-Person Coverage Limit
Let’s say you caused a car accident that has injured two people in another car. The per-person limit will come into being and help to cover their medical fees. If you purchase bodily injury liability insurance with a limit of $50,000 per person, then each injured person will be covered up to that limit.
Now where many people have been injured, the state’s mandated coverage minimum limit may not be enough. Upping that limit will, most certainly, help you if you find yourself in this position.
Per-Accident Coverage Limit
With medical costs increasing each year, it makes sense to raise your liability cap to better help you financially.
The bigger the coverage the better you are able to divide and help pay for medical expenses, lost wages, and legal expenses to the injured, resulting from the accident.
What Other Car Insurance Should I Get?
It is always better to be well insured. You do not want to be caught short and have to pay out of your pocket expenses. Here are four other car insurance to think about.
1. Insurance in Case of Collision
Collision insurance pays for the repairs or replacement of your vehicle if you have a road accident. Be it, with another vehicle, a tree, a fire hydrant, or a pole.
2. Comprehensive Insurance
Comprehensive insurance covers damages to your car beyond your control. In other words, falling objects, theft, riot, vandalism, and mother earth damage.
3. Extra Medical Expense Insurance
This is similar to bodily injury liability but pays out medical expenses, regardless of who is at fault for the motor accident.
4. Insurance For Uninsured And Underinsured Drivers
These two are separate but similar coverages. They help to pay out for damages in the event the driver either has no insurance or the insurance he does have is not enough.
Protect Your Finances With Bodily Injury Liability Coverage
We all know that accidents happen. As a result of this, auto insurance has bodily injury liability coverage.
Let’s do this! Now that you know the importance of bodily injury liability coverage, talk to us and we will help you to customize your auto insurance policy to suit your needs!
