Car Insurance Term: Bodily Injury Liability

If you have auto insurance, or are thinking about getting auto insurance, then you need to know how your policy deals with bodily injury liability. Bodily injury liability refers to your responsibility for any damage done to another person’s body should you be the cause of the accident that injured them.

Let’s say you accidentally hit a pedestrian while driving. He’s alright, but his arm is broken, and the trip to the emergency room and his treatment are going to cost a lot. As the person at fault in the accident, your insurance coverage will kick in. If you have a policy that offers $25,000 in bodily injury liability coverage, then you will more than likely be covered for the man’s treatment cost (minus your deductible, of course).

If, however, you are responsible for an accident that harms another person, and their medical bills exceed the amount of your bodily injury liability coverage, then you will be responsible for the amount of the medical bills after the bodily injury liability coverage has been exhausted. So, if your bodily injury liability coverage is $50,000, and the injured person’s bills come to $55,000, you will be responsible for that $5,000 difference. As with all aspects of insurance, the more you pay for your monthly premium, the greater the amount of money the insurance company will kick in should you get into a difficult situation.

If you have questions about bodily injury liability or any other aspect of auto insurance, be sure to sit down with a qualified insurance expert who can answer all your questions.

Here are other important auto insurance terms you should know:

  1. Personal Injury Protection
  2. Property Damage Liability
  3. Comprehensive Auto Insurance