It's no secret that auto insurance policies contain lots of industry jargon, leaving the average driver feeling confused and wondering what all the types of coverage are and why they should have them in place. If you've ever wondered about bodily injury liability, or BIL, here's a brief primer to give you a basic understanding:
What is bodily injury liability? This portion of your auto insurance policy covers you if you are the cause of the accident that hurts another person. The insurance will cover the medical costs of physical injuries that are incurred by people in your car, as well as those who are in the vehicles also involved in the accident. Additionally, your legal costs are also covered by this policy.
Who needs bodily injury liability? Nearly every driver needs bodily injury liability coverage since no one is immune from causing a motor vehicle accident. In most states, a minimum requirement is set for the dollar amount of coverage that you have. If you're a frequent driver--thus giving you more potential chances to cause an accident--it's always good to have more than the required amount so that you are fully covered should the unfortunate happen. Medical costs are one of the top reasons people declare bankruptcy, and by not having proper levels of insurance, you put yourself in financial jeopardy if you cause an accident.
How much bodily injury liability do you need? If your state requires it, then you'll need to purchase at least the minimum amounts which may be 50/100 which means that the insurance provider will pay out up to $50,000 per person involved in the accident, with no more than $100,000 being paid out per accident. On the higher end, policies may provide up to $500,000 in coverage, per accident. For people with more assets, it's also a good idea to buy more coverage so that you don't have to sell them in order to cover excess expenses if your policy limits are too low.
How much does it cost? Prices vary from insurance company to insurance company and the best way to know that you're getting the lowest price is to do an online comparison instantly on this website. Even if you aren't in a state that requires bodily injury insurance, it's often a wise move to take out a policy just to cover the bases. The money you spend each year will be worth it, knowing that you'll be in a relatively okay financial position should the worst happen. Many people who've never made a claim on their bodily injury liability policy say the peace of mind is well worth the minimal cost.
To get more of your questions about auto insurance and bodily injury insurance answered, contact your local insurance agent today. They'll be able to explain your state laws and show you your options when it comes to buying car insurance.
What Happens if You Do Not Have Auto Insurance in Your State?
In an effort to crack down on the high number of uninsured or under-insured drivers, every state in the country has enacted some sort of law that requires people who own and drive cars to be able t...
Read More →
How do you Know when it is Necessary to Call the Police when Involved in a Car Accident?
When you are in a major auto accident, you already know that it is important to call the police and an ambulance. If you do not contact the authorities personally, then it is likely that passersby ...
Read More →
Who is Covered by my Car Insurance if I am Not Driving?
If your friend borrows your car while hers is in the shop, or if your son lets a friend drive the family car, the coverage for the vehicle will be provided by your insurance, in most cases. While e...
Read More →