Monday, 23 May 2016

What is Bodily Injury Liability?

What is Bodily Injury Liability?
Bodily injury liability provides coverage in case you cause an auto accident in which another person (or people) is hurt. It covers the damages that you're legally responsible for, and provides a legal defense if someone sues you for damages.

Bodily injury coverage is mandatory in most states, and most states have a minimum limit, so be sure to check your state’s insurance requirements.

What does Bodily Injury Liability cover?
Bodily Injury liability limits are typically shown like this: $50,000/$100,000.

This is meant to represent the highest amount per person and per accident that your insurance company would pay if you had to use this insurance.

So for example, if your limit was $50,000/$100,000 and you caused an accident that injured other people, your insurance would pay for up to $50,000 of one person's medical bills and up to $100,000 for more than one person.

How much coverage do I need?
When choosing your Bodily Injury liability limits, you should consider all of your assets, including your home and future earnings. Why? Because if you don't have enough coverage to protect all of your assets, those assets could be at risk if you're liable for damages that exceed your coverage limit.

What is Comprehensive Coverage?
Comprehensive Coverage covers losses resulting from incidents other than collision. For example, you are covered if your auto is stolen or damaged by flood, fire or vandalism. Ever had a tree limb fall on your car during a storm? Or had someone break into your car? That's what this coverage is for.

If you own or lease your car, your bank may require you to carry Comprehensive Coverage.

What should my comprehensive deductible be?

When choosing a comprehensive deductible, or if you want to purchase Comprehensive Coverage at all, it's important to think about the age of your car and how much you think repairs might cost you.

A comprehensive deductible is the amount of money you would be comfortable paying out of pocket if you ever suffered this kind of loss. So if your car was stolen and you had a deductible of $500, you would pay $500 out of pocket and Liberty Mutual would handle the rest of the expenses.