What Does Bodily Injury Insurance Cover?

There are two types of damages that can occur when driving a vehicle: damage to property and damage to people. Bodily insurance, or bodily injury insurance, addresses the latter category. If you injure someone in a car crash, your bodily injury insurance will pay medical bills and other damages associated with those injuries.

Covered Parties

What some people find confusing about bodily injury insurance is the coverage it provides to specific people. If you cause an accident and you are injured in the process, bodily injury insurance won't pay for your medical care. It is intended specifically for people you injure in an accident that is your fault.

Of course, if you are involved in an accident where the other party is at fault, and you are injured, their bodily injury insurance will pay for your medical bills and other expenses, provided they are adequately insured. But remember that you can't always count on someone else's financial responsibility.

Whether the other people in your vehicle, in an at-fault accident, are covered depends upon your specific policy. In some cases, passengers will be covered under bodily injury insurance if certain criteria are met. You will need to read your policy documents or contact your insurance agent to find out for sure.

Covered Damages

Medical bills are the chief beneficiary of bodily injury insurance, but other expenses might be covered as well. Punitive damages, such as pain and suffering, can be awarded by a court of law if your case results in a law suit. Lost wages, death benefits, and medical equipment costs might also become an issue.

Bodily injury insurance will also pay for a legal defense if your case winds up in court. The insurance company wants to mitigate your damages as much as possible since they are the responsible party. In many cases, however, the insurance company will settle with the other driver out of court to avoid the costs associated with a trial.

Covered Limits

You decide how much bodily injury insurance you want to purchase. Bodily injury insurance is required in most states, but the coverage limits are usually pretty low. If you opt for the minimum coverage, however, you could be placing yourself at financial risk.

Keep in mind that insurance is designed to protect you from financial liability. If the damage you cause is in excess of your coverage limits, you will have to reach into your own pocket to cover the difference. Medical expenses alone can extend into the hundreds of thousands of dollars, so keep that in mind when you select coverage limits for bodily injury insurance.

Source:

CarInsurance.com