Bodily Injury Liability Insurance Coverage

What Is Bodily Injury Liability?

Bodily injury liability covers financial losses suffered by others when you cause a car accident. It pays the costs related to their injuries so they can recover without coming after you directly.

Unlike personal injury protection (PIP), which pays for your own injuries, bodily injury liability is designed specifically to cover others’ medical expenses. It’s vital when it comes to protecting yourself from lawsuits or serious personal financial loss.

In most states, it’s a legal requirement to carry adequate liability coverage. Even when it’s not, taking out liability insurance is a practical way to safeguard your assets.

What Does Bodily Injury Liability Cover?

Bodily injury liability covers any injury-related costs suffered by others in an accident, including the following:

Medical Expenses

Medical bills are usually the most immediate and significant costs after a car crash. Depending on how bad the accident was, injury victims could face emergency treatment, surgeries, long-term care, therapy, and rehab. All of that adds up quickly.

Bodily injury liability coverage ensures that the injured party gets the treatment they need without any delay. Without this coverage, the at-fault driver could be vulnerable to a personal injury lawsuit, especially if several people got hurt in the crash.

Legal Fees

Lawsuits are common in accidents that involve severe injuries. As such, bodily injury liability can also cover legal fees, like attorney costs, court filings, and settlements or judgments.

With this protection, the at-fault driver doesn’t have to bear the full financial burden of defending themselves in court. Since legal costs can easily reach into the tens of thousands of dollars, that peace of mind can’t be overstated.

Loss Of Income

When a person is hurt in an accident and isn’t able to work, bodily injury insurance steps in to compensate for those lost wages. It helps victims stay financially stable as they recover while preventing the at-fault driver from having to shoulder the costs directly.

If you don’t have sufficient liability limits, you could face a lawsuit involving wage garnishment to make up for any amount your insurance doesn’t cover.

Pain And Suffering

Besides physical injuries, accident victims may be left dealing with severe emotional distress and reduced quality of life. Bodily injury coverage compensates for those non-economic impacts to address the broader effects of the crash on the injured person’s life.

When considering these factors, courts look at emotional issues, like depression, anxiety, post-traumatic stress, and chronic pain, to figure out how much to repay the victim. It’s another reason why it’s a good idea to have ample liability coverage.

Funeral Costs

Unfortunately, car crashes are sometimes so severe that someone loses their life. When that happens, bodily injury liability can help cover funeral and burial expenses.

Depending on where you live, the average cost for a funeral can range from $7,000 to $9,000 or more. Even at the low end, funeral expenses can place a heavy financial strain on a family that’s already grieving the loss of a loved one.

When you have funeral and burial coverage on your auto insurance policy, you can rest easy knowing these costs will be taken care of and offer some relief during an already difficult time.

How Much Bodily Injury Liability Do You Need?

The answer to that question depends on your financial situation, driving habits, and the requirements where you live. While each state has its own minimums, that amount often isn’t enough to cover more serious accidents.

For example, suppose a driver causes a crash that triggers a multi-car pileup on the interstate. The costs of such a mishap will quickly exceed a policy with the general minimum of $25,000 per person and $50,000 per accident.

To better protect yourself, consider paying for higher limits, like $100,000 per person and $300,000 per accident. It will increase your premium, but it will also offer much better financial protection should the worst happen. That way, you’ll know you’re covered even in worst-case scenarios.

What Are Bodily Injury Liability Limits?

Bodily injury limits represent the maximum amount your insurer will pay for injuries sustained in an accident you caused. These limits are divided into two main categories:

Per-Person Limit

The per-person limit is the highest amount your policy will pay for injuries suffered by a single individual. For instance, if your policy has a $50,000 per-person limit, it will cover up to that amount for one claimant’s medical bills, lost income, and other impacts.

Per-Accident Limit

The per-accident limit is what your policy will pay for all injuries in a single accident. With a $100,000 per-accident limit, your insurer would cover combined claims up to this amount for multiple injured parties. Once this limit is reached, you can be held personally liable for any additional losses.

Which States Require Bodily Injury Liability Coverage?

Most states require drivers to carry bodily injury liability coverage as part of their minimum auto insurance requirements.

Drivers in states like California, Florida, and New York must carry minimum limits to ensure that accident victims are fairly compensated after a crash. Depending on the state, these limits can range from $15,000 per person to $50,000 per accident.

Bodily injury liability isn’t used as often in no-fault states because PIP is the main form of coverage for medical costs. Even so, it’s still a good idea to invest in bodily injury liability to cover severe injuries or losses that exceed PIP limits.

If you’re not sure about your state’s requirements, it’s a good idea to look into them. If you cause an accident and it turns out you weren’t carrying the right coverage, you could face fines, license suspension, and major financial problems later on.

Bodily Injury vs. Personal Injury Protection

The difference regarding personal injury vs. bodily injury insurance lies in who’s covered. Bodily injury liability pays for other people who have been hurt in an accident caused by the policyholder.

PIP, on the other hand, covers hospital bills and lost wages for the policyholder and their passengers, regardless of who caused the crash. PIP offers immediate financial relief, while bodily injury liability typically addresses longer-term liabilities.

Factors That Influence The Value Of A Bodily Injury Claim

Several factors dictate the value of a bodily injury claim. They can vary from case to case, depending on the exact circumstances, but they often include the severity of injuries, the amount of the victim’s medical bills, and the length of their recovery.

Non-economic factors, like pain and suffering or reduced quality of life, also play a major role. Additionally, the strength of the evidence can impact the final settlement amount. The at-fault driver’s policy limits might also place restrictions on the type and amount of compensation available.

Steps To Take After A Bodily Injury

It’s essential to take two key steps to protect your health and legal rights after an accident.

Follow Treatment Plans

Always follow any treatment plans prescribed by your doctor. Attend all follow-up appointments, take your medication, and don’t do anything that might jeopardize your health until you’re fully healed. Besides helping with your recovery, following your doctor’s orders will also provide the proof needed to support your claim.

Any lapses in following your treatment plan could ultimately weaken your case. Should the insurance adjuster catch wind of it, they might argue that your injuries aren’t severe enough to warrant a claim and reduce or even deny your compensation.

Hire a Lawyer

When you’re dealing with a bodily injury claim, you need a knowledgeable personal injury attorney in your corner. These legal professionals can handle high-stakes negotiations with insurance adjusters, collect evidence to build a strong case and advocate for your best interests.

How Adam S. Kutner Can Help in Bodily Injury Liability Insurance Coverage

At Adam S. Kutner, Injury Attorneys, we’re committed to helping injury victims work through the complexities of bodily injury liability insurance coverage claims. With over three decades of experience, our team has the knowledge and resources to evaluate your situation and negotiate a fair settlement on your behalf.