Bodily Injury Liability Coverage

Who Needs Bodily Injury Coverage

Simply put, every driver. You never know when you might cause an accident, and you can easily protect yourself from the staggering debt caused by legal suits or extensive medical costs.

At this time, however, not all states require this coverage. But you should know that the states that don’t require it also don’t offer any extra protection against financial responsibility in an accident―meaning that no matter where you live, if you cause an accident with bodily injury to a person, you will be liable for all costs.

Some states that require the coverage will waive that requirement as long as you can show proof of financial responsibility in another way. Usually that means a bond in a specific amount (varying by state) issued by an authorized company, or a certificate of self-insurance (this mostly applies to dealers or companies with more than 25 insured vehicles).

Where to Get Bodily Injury Coverage

All major car insurance carriers offer bodily injury liability coverage, even in states where it is not required. Shop around to find the coverage that best suits your needs.

How Much Bodily Injury Coverage Costs

Your cost for the coverage is based on how much coverage you want. The higher the amounts, the higher your cost will be.

If bodily injury liability coverage is required in your state, chances are that the minimum requirement is listed in a "split" amount, such as 15/30 or 50/100. Bodily injury coverage policies always have two amounts, representing:

• The maximum payout per person

• The maximum payout in total

If your policy has bodily injury coverage of 50/100, that means it will pay up to $50,000 per person injured in an accident, but only to a maximum of $100,000.

A good rule of thumb for many buyers is to purchase the highest bodily injury liability coverage limit they can afford. If your coverage isn’t sufficient to pay for all injury-related costs in an accident you caused, the injured person’s lawyer can then come after you for the remainder of the money.

However, if you’re bringing in barely $30,000 a year and don’t own a home or any other valuable assets―meaning the lawyers wouldn’t get much even if they did sue you―it might make more sense to purchase a lower level of coverage for the time being. Just remember to increase your coverage as your needs change and your assets increase.