Have you ever thought about reading the fine print of your car insurance policy? Probably not, but in reality, it’s probably a good idea. It’s important to understand the different types of coverage your policy contains and how each one comes into play if you’re in an accident.
Your policy includes several types of coverage, each with a different “limit,” or amount that it will reimburse you for if you have to file a claim. One of these coverage types is bodily injury liability. It pays for someone else’s medical bills if they are injured in an accident that you cause.
Without this important coverage, you’d be responsible for paying thousands of dollars in medical and other expenses for the injured party. Bodily injury liability coverage makes sure your assets are protected while the injured party is compensated when you’re at fault for an accident.
Learn more about bodily injury liability insurance below. And as always, contact an independent insurance agent for expert information and evaluation of your car insurance needs.
Key Takeaways - Bodily Injury Liability
- Bodily injury liability is a type of car insurance coverage that pays for injuries you cause to another person or persons while driving. It does not cover your own car accident-related injuries.
- Your policy limits the amount it will pay out for a bodily injury liability claim. This is the maximum amount it will pay per person (e.g., $100,000) and per accident (e.g., $300,000), and you're responsible for any costs exceeding that limit.
- Bodily injury liability coverage is mandatory in most states. It is often packaged with another required coverage—property damage liability coverage.
- It is often a good idea to purchase more property damage liability coverage than the minimum limit required by your state.
What Is Bodily Injury Liability Insurance?
Bodily injury liability is a type of car insurance coverage that pays for other parties' medical bills and injury-related expenses when you're at fault for an auto accident.
When you’re at fault for an accident, it’s your responsibility to compensate any other parties whom you’ve injured. It can even help with your legal fees if you’re sued by the other party.
Bodily injury liability insurance is required in most states, but the required coverage limits vary by state. Most people purchase more than their state’s minimum coverage requirements to make sure they’re adequately protected if they cause a crash.
What Does Bodily Injury Liability Cover? (Medical, Legal, and More)
Bodily injury liability covers injury-related expenses for other parties (e.g., other drivers, passengers in another car, unrelated passengers in your car, pedestrians) if you’re at fault for a car accident. Typically, bodily injury liability coverage pays for the following types of expenses:
- Medical bills: Pays fees from medical providers and facilities, like emergency room fees, physician fees, physical therapy, other ongoing care, and more.
- Lost income: Compensates the injured party for lost income if the person cannot work because of the accident.
- Funeral expenses: Pays for the other party’s funeral costs if the accident leads to their death.
- Pain and suffering: May pay for expenses related to prolonged pain or undue suffering and emotional stress following the accident.
Remember, this coverage only applies to other people’s expenses. It does not help you pay for any injuries that you may have sustained in the accident. Likewise, if you’re injured in an accident that is not your fault, the at-fault driver’s bodily injury liability coverage should pay for your medical expenses.
Your bodily injury liability coverage also covers legal fees if you’re sued.
What Bodily Injury Liability Doesn’t Cover: Common Exclusions
Bodily injury liability coverage does not pay for any medical bills for you or your family members. It also doesn’t cover any type of physical damage; your property damage liability insurance covers damage to other people’s property.
Remember, your bodily injury liability coverage won’t pay out a claim that exceeds your coverage limit. If you owe more to properly compensate someone, you’ll have to pay the remaining amount on your own.
Understanding Bodily Injury Liability Limits (Per Person and Per Accident)
Bodily injury liability limits can be confusing when you read your policy. Bodily injury liability coverage is expressed as part of your overall package of liability coverage, which includes bodily injury liability coverage and property damage liability coverage.
Auto liability coverage is typically expressed as something like this (numbers vary):
- Bodily injury and property damage coverage: 100/300/50
This is called “split-limit” coverage. It allows different maximum liability limits for bodily injury and property damage you're responsible for. The first two numbers (100/300) refer to your bodily injury coverage limit. The third number (50) is your property damage coverage liability limit. Here’s what the numbers mean:
- Bodily injury liability per person coverage limit: The maximum amount that your policy will pay to any single person who is injured in an accident that you cause.
- Bodily injury liability per accident coverage limit: The maximum that your policy will pay to all injured parties in any single accident you cause.
- Property damage liability per accident coverage limit: The maximum amount that your policy will pay to all affected parties in any single accident you cause.
Using 100/300/50 as our example, here’s what your liability coverage limits would look like:
- Bodily injury liability coverage limit: $100,000 per person coverage limit, and $300,000 per accident coverage limit
- Property damage liability coverage: $50,000 per accident coverage limit
Keep in mind that in some cases you can purchase a combined single-limit policy that merges the limits for both bodily injury and property damage liability coverage. Often, the combined single limit will be between $300,000 and $500,000, and can be divided up in any way to cover injuries and property damage claims after an accident you’re at fault for.
Single limit policies can be beneficial in some cases, as they allow claims payments to go where they’re most needed, for example, if medical bills are high and property damage is low, or the reverse. Combined single-limit policies are typically more expensive than split-limit policies.
Minimum Bodily Injury Liability Requirements by State
Bodily injury liability coverage is required in most states, with only a few exceptions. New Hampshire is the only state that does not require car insurance, but drivers in the state are required to prove that they have the financial ability to pay for damages if they cause an accident.
Here's some other examples of bodily injury requirements in certain states:
| State | Liability Insurance Requirements |
|---|---|
| California |
$30,000 per person for bodily injury / $60,000 per accident for bodily injury / $15,000 per accident for property damage |
| New York |
$25,000 for bodily injury and $50,000 for death per person / $50,000 for bodily injury and $100,000 for death per accident / $10,000 per accident for property damage |
| Texas |
$30,000 per person bodily injury / $60,000 per accident bodily injury / $25,000 per accident property damage |
| Illinois |
$25,000 per person bodily injury / $50,000 per accident bodily injury / $20,000 per accident property damage |
How Much Bodily Injury Liability Insurance Should You Buy?
In many cases, the state-mandated car insurance minimums may not be enough to fully cover injuries you might cause. Accident-related medical bills can pile up to quickly exceed your state's minimum required amount. And aside from the cost of medical related expenses, you could face a costly lawsuit in just about any situation where you cause an injury accident.
Instead, choose a bodily injury liability coverage limit equal to or more than your net worth (what you own minus what you owe).
Keep in mind that most auto insurers only sell liability limits up to $500,000. If you have a high net worth, consider buying an umbrella policy, which can offer excess liability protection ($1 million or more) and bridge the gap, especially if you’re sued.
The best way to determine how much bodily injury liability coverage you need is to sit down with an independent insurance agent. A local agent can help you understand how the coverage works and how much coverage you will need to protect your assets.
Bodily Injury Liability vs. Property Damage Liability: What’s the Difference?
Bodily injury liability coverage and property damage liability coverage both pay for harm you cause to others if you’re at fault for a car accident. What’s the difference? One pays for physical damage to property, and the other pays for injuries to individuals. Here’s how it shakes out:
| Category | Bodily Injury Liability | Property Damage Liability |
|---|---|---|
| Who or what is covered? | People injured in an accident you cause | Property damaged in an accident you cause |
| Types of expenses covered |
Medical expenses Lost wages Funeral expenses Pain and suffering Your legal fees |
Repairing or replacing damaged property (cars, buildings, fences, landscaping, etc.) Your legal fees |
| Does it cover your own expenses? | No | No |
Do You Need Bodily Injury Liability Coverage? Legal and Financial Consequences
Yes, you need bodily injury liability coverage. Because it’s required in most states, driving without it comes with a variety of legal consequences (depending on your state), including:
- Fines
- License and registration suspension
- Vehicle impounding
- Punishment like community service or even jail times
Aside from the legal consequences of driving without bodily injury liability coverage, you’ll also face serious financial consequences if you’re at fault for an injury accident and don’t have this essential coverage. First, you simply may not have the funds to pay for other people’s medical expenses. What’s more, you could be sued and face mounting legal fees and additional financial judgments against you.
How an Independent Insurance Agent Can Help You Get a Bodily Injury Liability Insurance Quote
An independent insurance agent is your best resource for car insurance and understanding bodily injury liability coverage.
A local agent can get fast, reliable, and free quotes from multiple insurance companies. You’ll be able to compare costs and coverage and choose the policy and bodily injury liability limits that best suit your needs and budget.
Top 5 FAQs Related to Bodily Injury Liability
What does bodily injury liability insurance cover in an auto accident?
Bodily injury liability coverage pays for other parties' medical bills and injury-related expenses when you're at fault for an auto accident. This can include medical bills, funeral expenses, lost income, and compensation for pain and suffering.
How much bodily injury liability insurance am I required to have?
The amount of bodily injury liability insurance that you’re required to have depends on the state where your car is registered. Each state has certain mandated coverage limits that are the minimum amount of liability coverage that drivers must have.
What is the difference between bodily injury liability and property damage liability?
Bodily injury liability coverage pays for injury-related expenses for other people when you’re at fault for an auto accident. Property damage liability coverage pays for physical damage to other people’s property when you’re at fault for an auto accident. Neither pays for your own injuries or damage to your own vehicle or personal property.
Will bodily injury liability coverage pay for my own medical expenses?
No, bodily injury liability coverage will not pay for your own medical expenses. If you have medical payments coverage included in your auto insurance policy (or personal injury protection, if available in your state), it can help pay for some of your expenses, regardless of whether you’re at fault for the accident.
How do I determine the right amount of bodily injury liability coverage for me?
Of course, you should always purchase at least the minimum amount of bodily injury liability coverage required by your state. Driving without the required insurance is against the law in most states. The minimum coverage is rarely enough, however, and you should consider purchasing liability coverage limits that are equal to or more than your net worth.
Sources
https://idoi.illinois.gov/consumers/consumerinsurance/auto-insurance-shopping-guide.html
https://www.dmv.ca.gov/portal/vehicle-registration/insurance-requirements/#:~:text=California%20requires%20insurance%20for%20all%20vehicles%20operated,company%20licensed%20to%20do%20business%20in%20California
https://www.tdi.texas.gov/pubs/consumer/cb020.html#:~:text=Texas%20law%20requires%20you%20to%20have%20at,property%20damage.%20This%20is%20called%2030/60/25%20coverage.
https://dmv.ny.gov/insurance/insurance-requirements