Suppose you get into a car accident and injure someone else. Bodily injury liability will cover the expenses involved in treating that person. This insurance coverage not only pays for the hospital bills but also for the lost income as a result of the accident. It will also cover the legal fees, should the third party involved sues you for that. In this article, we will discuss the details of what this liability means for the insuree and why is it significant.

What Does Bodily Injury Liability Cover?

There are basically three types of coverage that Bodily injury liability has in case you are involved in an accident. It should be noted here that, this coverage is only limited to the third party or any uncovered passenger in your car. It does not include yourself. Here are three coverage that this liability cover:

Medical coverage: It helps to pay for someone else’s emergency services and hospital care if you cause a car accident. It will also happen to help cover all the necessary follow-up doctor visits and other related costs, like having to buy crutches or a wheelchair.

Compensated lost wages and income: Assume that you hit another car, and that driver is seriously injured and needs to attend a few months of physical therapy. Or, even worse, perhaps the person you injured loses income or wages because he cannot work or perform the normal functions of his job. The insurance coverage in your car insurance policy may help pay their compensation in this case. However, the state’s laws may place limits on the amount of compensation the injured person can receive for lost income.

Possible legal fees: After an accident resulting in injuries, it may happen that you could be taken to court by either the injured party or the insurance company injured party’s. This may require you to seek legal counsel, which can be costly. Bodily injury liability coverage will help pay for your legal fees incurred after the accident.

Who Does Bodily Injury Liability Cover?

Bodily injury liability insurance helps in paying for the costs described above for another person or people that you injure in your car. This may include a driver in another car, pedestrians, or any unrelated passenger in your own car.

As mentioned earlier, this coverage does not pay for you or your family’s medical expenses or lost income if you cause a car accident. However, it may help pay for your legal expenses if you’re taken to court over an accident you caused.

Coverage Limits:

Bodily injury liability coverage is subject to a maximum limit, that is the maximum amount the car insurance policy would pay for covering the claim. The liability coverage generally has two coverage limits: a per-person limit in which a person can be given a maximum of a predetermined amount and a per-accident limit, this could be the maximum limit that the insurance company will pay in a given accident.