What does Bodily Injury, Underinsured or Uninsured Motorists, PIP, and Medical Payments have in common? These are all auto insurance coverages. Few people understand what they mean or what they offer you as an insured in terms of protection.
We thought it would be a good idea to tackle the most popular of these coverages, Bodily Injury coverage. We will explain what it is, how it works, and why it is important.
What is Bodily Injuries Coverage?
Bodily injury coverage, also known as BI, is auto insurance that covers you for damages to third parties if you are involved in an accident. Here are some things you need to know:
- The coverage usually has two amounts: a per-person amount and an aggregate amount. If your BI coverage is 15/30, it means that you have $15,000 coverage for any one injured person and $30,000 aggregated coverage for all other injured parties.
- Each state has its own requirements.
- You can choose the coverage that you desire beyond what is required by your state. To ensure you have adequate coverage, you can choose to buy 50/100 limits if your state requires that you carry 15/30 limits.
What is BI coverage?
If your policy is current and in force, then if you are involved in an accident that results in injury to another person, your BI coverage will cover those injuries. Here are some details:
- If you own a vehicle, BI coverage must be obtained in all 50 states
- In an injury claim, the injured party must include their loss of wages
- Your insurance company is responsible for monitoring all injury claims against your policy. They will do everything they can to resolve the claim(s), within the policy limits.
- If your limits are inadequate, an injury claim can be valued at a higher value. In many states, the injured party can also seek recovery from you.
- An injury claim can be divided into two main parts: Special Damages (actual doctor bills, lost wages etc ) and General Damages, or pain & suffering.
- Soft tissue injuries are the most common injuries sustained in auto accidents. These include whiplash, sore neck and back.
Why do you need BI coverage?
There are a few key reasons that everyone should ensure they have adequate BI coverage beyond the obvious requirement by your state.
- Injuries can be extremely costly. Injuries to 3 persons could result if you don’t have adequate BI coverage
- You should make sure you protect your assets by purchasing higher BI limits if you have large assets. This will cost you only a few dollars more per month, but it is well worth the investment when you consider how much you could lose.
- Advocate: Your insurance company acts as your advocate and helps you settle any valid claims against you. They’re experts in this… Imagine dealing with an insurance company that covers injured people. What would you do?
As you can see, adequate BI coverage is more valuable than complying with the minimum state coverage requirements. As with all insurance, BI coverage is a way to protect yourself. It also allows you to have someone to advocate for you if you are involved in an accident, find fault, or cause injury. It’s worth spending the time and money to ensure that you have adequate insurance.
