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What is Auto Insurance Bodily Insurance Coverage?

Purchasing liability auto insurance is required in most states in the United States. Classic liability insurance includes coverage for both Bodily injury and Property damage.  Bodily injury and Property damage are offered together because after an accident, the driver who is at fault will be asked to pay for all damage costs.

Bodily injury is when the costs for doctor and hospital bills for the injured party are paid for and other costs like possible treatment, therapy, lost income and medicines are covered by the liability insurance policy. Types and coverage of a bodily injury policy may vary depending on the coverage that you choose. Insurance companies offer liability, personal injury payments, Uninsured and Underinsured Motorist.

The minimum policy being required by most states is the estimated maximum amount the policy will cover for bodily injury to a single person which is also the maximum amount for all the people who might have been hurt in the accident. These maximum amounts are listed in thousands of dollars and listed together with a slash like: 50/100.

The example 50/100 means that $50,000 is the maximum payment made to an injured party, while $100,000 is the maximum payment made to all the people who might have been hurt during an accident.

The other type of bodily insurance is the Personal injury payment; this is for people who do not have a medical or disability coverage. This will cover for medical costs and lost income by the policyholder and any of the other passengers in case of injury. This type of bodily insurance is something to be considered if the person has a high deductible in the insurance. Personal injury payments pay out 100 percent, and the insured do not need to pay anything from their pockets. There are some states that require this coverage.

An uninsured or underinsured motorist is intended for drivers who are at fault and lack enough liability coverage or those who do not have insurance at all. This type of coverage also pays out for hit and run accidents. There are states that require this coverage, but it is recommended for policyholders.

Although states require that drivers purchase a minimum amount of coverage, the driver has the choice of purchasing a higher amount. Higher coverage does not necessarily mean that it is more expensive. Higher coverage is used to protect drivers from possible legal and bankruptcy problems in case of unexpected events.

Before purchasing an insurance policy, consult with your insurance agent which type of bodily injury coverage is best for you. When you only use your car and drive around once a week in rural areas, then you probably don’t need an expensive coverage. If you often drive in a congested and urban area, purchasing a more expensive bodily injury limit is advisable. There are also options for bodily insurance with home and business, if you want to insure the people who might be injured in your property then you might want to consider getting this option.