It ’ s a major depart of your car policy policy. undoubtedly, if you ’ ve tried to fill out your indemnity data on-line or have attempted to get an on-line indemnity quote, you ’ ve been asked about your bodily injury liability limits. If you ’ re like most people, you had to look that astir and, most likely, that ’ s what brought you here .
Limits, liability, coverage… the car indemnity industry sure is attached to their jargoon. Because of that, it isn ’ thyroxine comfortable to understand how car indemnity coverage works. When you get down to specific elements of your insurance policy like bodily injury indebtedness limits, that ’ s when things can get truly confusing. To help this go more smoothly, we ’ re going to break this explanation into the different ways bodily injury or ‘ BI ’ works…
Bodily Injury
When your policy refers to ‘ Bodily Injury ’ they ’ re talking about any prison term a driver or passenger, either in your vehicle or in another fomite, is injured in such a way that they require medical treatment. This is anything from a bruise through to something actually unplayful. basically, Bodily Injury refers to a person who has been hurt as a solution of a vehicle-related accident.
If you very want to know more, you can read the fine print on your car indemnity policy documents ( gape ). There, you will find a drawn-out explanation of the terminus, but for the purposes of getting a basic appreciation of your coverage, that ’ s what it means .
Bodily Injury Liability
Bodily Injury Liability means being responsible for the damage caused to an person. For exemplar, if you ’ re in a car accident, you hit another vehicle and the person in that fomite is injured : that ’ s what your bodily Injury Liability would cover .
If you want to understand the term ‘ indebtedness ’ better and how it is related to your car indemnity, take a moment and read our article explaining liability coverage .
In terms of Bodily Injury Liability and your policy policy ( or your car indemnity quotation mark ), you are frequently asked to refer to or input two numbers. We ’ ll explain that next…
Bodily Injury Limits
Bodily Injury Limits are often referred to as a set of numbers ( or dollar amounts ) separated by a solidus. They frequently look something like this : $ 100,000/ $ 300,000 or this : 100/300. Bodily Injury Limits denote to the maximal amount your insurance ship’s company will pay when person is injured by you in a cable car accident. We ’ ll explain these numbers in more detail next.
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so now that you know what Bodily Injury Limits are, let us explain how they work. Your bodily Injury Limits consist of two numbers separated by a flog. The first number is the maximum amount your car indemnity company will pay to cover costs related to aesculapian bills arising from an injury related to a car accident. This is a maximal based on one person ’ sulfur injuries .
The second numeral in your Bodily Injury Limits shows the maximal amount your indemnity company will pay for ALL medical bills ( regardless of how many people are injured ) stemming from a single car accident .
so, imagine your limits are $ 100,000/ $ 300,000 and there is a car accident where three people are injured. Each person would get up to $ 100,000 of coverage for their injuries, astir to a maximum of $ 300,000 overall. Make common sense ? This stuff is complicated, so shuffle certain you do your inquiry before buying a policy to make sure you have coverage that suits your needs and what you feel comfortable with .
Do I Have Enough Coverage?
Like we said, it ’ sulfur hard to know how much coverage is enough — specially for something a complex as bodily wound coverage. That ’ randomness why most states have minimum limits. The term ‘ minimum restrict ’ means that the department of state establishes a certain come of coverage that drivers are required to carry and no one is allowed to carry less than that.
Some states, like Florida, require you to carry no bodily injury coverage at all, but New York requires you to carry a match of different BI coverages. If you ’ ra certain you want the minimum, check out our Auto Insurance by State guides. Select your state and read about your state ’ second minimum coverage laws .
When considering the total of Bodily Injury Liability coverage to purchase, you should consider the prize of all of your assets. Assets are anything you own that have a dollar respect attached to them. This includes vehicles you own, property, real estate and bank accounts. People with more assets tend to require higher limits — but ultimately, it ’ s up to you .