What Does Bodily Injury Liability Insurance Cover?
Bodily injury liability insurance is a car insurance coverage that pays the cost for injuries that a driver causes to others. Further, it may also include other drivers, passengers, or pedestrians.
All the medical expenses, loss of salaries, legal expenses, and even in some cases, the funeral expenses come under this policy cover.
Bodily Injury Liability Insurance Ensures To Carry The Following
Medical Expenses: It pays for the victim’s hospital charges if a car accident happens. It includes follow-up doctor expenses and also the associated tools like wheelchairs or crutches.
Loss Of Wages: Suppose you hit a pedestrian with your car, and he got a severe injury which requires prolonged treatment. He will have to stay at home for months and needs to undergo physiotherapy to be back to the normal condition. During this period, he will not be able to go to work and earn money. This policy will compensate for the loss of income in that case. The amount of compensation will vary depending on the policy rules.
Legal Expenses: The injured ‘person’s relatives may take you to court after the accident. This policy will help you to bear the legal expenses.
Who Comes Under The Coverage Of Bodily Injury Liability Insurance?
If you cause the car accident, it will cover the injured person(s). He might be the driver of another car, the passengers of the other car, pedestrians, or unrelated passengers in your vehicle. If the accident happened because of you, the insurance would not pay medical expenses for you and your family. But it will help you out by paying the legal costs if the injured party opts for the court order.
How Much Coverage Will Be Sufficient?
Go through the state laws while choosing it. You must buy the minimum liability coverage. You can exceed the limits if you buy more coverage. You may opt for the combined coverage that includes both the bodily injury and property damage expenses up a particular limit.
It is better to buy the higher limits; otherwise, you may have to pay out the extra medical cost that the policy does not cover your own.
What Is Umbrella Insurance?
It is another policy that will help you by paying the remaining amount when the expenses of the auto policy reach the maximum limit.
Let us consider, your bodily injury liability insurance limit is $3, 00,000, whereas the medical expenses of the injured pedestrians are $3, 10,000. In this case, the umbrella policy will pay out the extra $10,000 that you would have had to pay from your pocket otherwise.
How Does It Differ From The Property Damage Liability Coverage?
The property damage insurance will pay the cost of the property like a car or boundary wall of a house if you hit it with your car. But this does not pay the hospital charges of the injured person or driver.
Most of the countries have the rule to buy a minimum amount of this insurance too.