Bodily Injury Liability
How much bodily injury liability should you have? And what does it cover? Find out how much coverage you need to protect against expensive car accident claims.
- What Is Bodily Injury Liability?
- How Much Bodily Injury Liability Do I Need?
- What Does Bodily Injury Liability Cost?
- Do I Really Need Bodily Injury Liability Coverage?
- How Do I File a Bodily Injury Claim?
- What to Expect After Making a Claim
- What if There Is a Bodily Injury Claim Against Me?
- Other Auto Insurance Coverages
What Is Bodily Injury Liability?
Bodily injury liability (BI) covers the costs associated with injuries to the other person/people involved in an auto accident for which you are found legally responsible. It is sometimes referred to as "third-party" insurance since it covers other drivers and passengers, not you.
This coverage can also provide a legal defense in the event the other person sues you for damages. It is required by law in most states.
BI can insure against a number of expenses associated with causing an accident, particularly if there are injuries. Generally, it covers:
Medical Expenses
These include emergency room and hospital care costs, necessary follow-up doctor visits, and other medical costs like the purchase of a wheelchair or other required medical equipment.
Legal Fees
If your accident results in injuries, you may sued by the other party or their insurance company. If you must seek legal counsel to assist you, this coverage may help cover the cost.
Loss of Income
If you cause an accident and the other driver is injured to the extent they cannot perform the normal functions of their job, bodily injury liability will compensate for lost wages.
Pain and Suffering
This may be a result of a court order. The other party may claim repayment for lingering pain or emotional distress from the accident or as a result of their injuries.
Funeral Costs
If someone passes away as a result of the accident, this coverage can help pay for their funeral costs.
How Much Bodily Injury Liability Should I Have?
Most states require minimum BI liability coverage limits (more on these below). But you can—and probably should—get higher levels of coverage.
To estimate how much coverage you need:
- Add the total value of your assets, including your home, car, savings, and investments
- Subtract any debt you have.
This calculates your net worth. Your total bodily injury limits should at least match this amount.
Typically, you will see BI coverage listed at two numbers: The first is a per-person limit, and the second is a per-accident limit.
- The first number ($50,000) represents the coverage limit for damages if only one person is injured in an accident. You would be covered for damages up to this dollar amount. If the damages exceed that amount, you are responsible for covering what remains out of your pocket.
- The second number ($100,000) is the coverage limit for the total amount of damages if more than one person is injured. As with the first number, you would be covered for damages up to this amount and if damages exceed that amount, you must cover the remaining out of your pocket.
Because you must pay out of pocket for damages exceeding your coverage amount, you may want to consider coverage higher than the state minimum.
Keep reading to learn how much bodily injury liability will cost.
What Does Bodily Injury Liability Cost?
This chart helps illustrate the cost difference between the minimum required coverage and the coverage experts recommend. In most cases, it's small enough to make more coverage worthwhile.
| State | Min. Coverage Per Person / Incident | Est. Annual Cost: Min. | Est. Annual Cost: 100/300/100 |
|---|---|---|---|
| Alabama | $25,000 / $50,000 | $508 | $679 |
| Alaska | $50,000 / $100,000 | $436 | $530 |
| Arizona | $15,000 / $30,000 | $513 | $761 |
| Arkansas | $25,000 / $50,000 | $501 | $649 |
| California | $15,000 / $30,000 | $573 | $802 |
| Colorado | $25,000 / $50,000 | $521 | $726 |
| Connecticut | $25,000 / $50,000 | $643 | $901 |
| Delaware | $25,000 / $50,000 | $846 | $1,156 |
| Florida | $0 / 0 (no state minimum requirement) | N / A | N / A |
| Georgia | $25,000 / $50,000 | $548 | $718 |
| Hawaii | $20,000 / $40,000 | $510 | $676 |
| Idaho | $25,000 / $50,000 | $325 | $427 |
| Illinois | $25,000 / $50,000 | $422 | $547 |
| Indiana | $25,000 / $50,000 | $425 | $527 |
| Iowa | $20,000 / $40,000 | $313 | $388 |
| Kansas | $25,000 / $50,000 | $429 | $522 |
| Kentucky | $25,000 / $50,000 | $975 | $1,292 |
| Louisiana | $15,000 / $30,000 | $971 | $1,711 |
| Maine | $50,000 / $100,000 | $416 | $473 |
| Maryland | $30,000 / $60,000 | $627 | $755 |
| Massachusetts | $20,000 / $40,000 | $484 | $716 |
| Michigan | $20,000 / $40,000 | $1,368 | $1,488 |
| Minnesota | $30,000 / $60,000 | $472 | $544 |
| Mississippi | $25,000 / $50,000 | $603 | $816 |
| Missouri | $25,000 / $50,000 | $432 | $581 |
| Montana | $25,000 / $50,000 | $381 | $528 |
| Nebraska | $25,000 / $50,000 | $406 | $500 |
| Nevada | $25,000 / $50,000 | $722 | $1,240 |
| New Hampshire | $25,000 / $50,000 | $492 | $617 |
| New Jersey | $15,000 / $30,000 | $881 | $1,184 |
| New Mexico | $25,000 / $50,000 | $488 | $672 |
| New York | $25,000 / $50,000 | $887 | $1,092 |
| North Carolina | $30,000 / $60,000 | $351 | $460 |
| North Dakota | $25,000 / $50,000 | $345 | $397 |
| Ohio | $25,000 / $50,000 | $429 | $512 |
| Oklahoma | $25,000 / $50,000 | $531 | $747 |
| Oregon | $25,000 / $50,000 | $639 | $769 |
| Pennsylvania | $15,000 / $30,000 | $500 | $692 |
| Rhode Island | $25,000 / $50,000 | $920 | $1,186 |
| South Carolina | $25,000 / $50,000 | $596 | $788 |
| South Dakota | $25,000 / $50,000 | $281 | $348 |
| Tennessee | $25,000 / $50,000 | $408 | $530 |
| Texas | $30,000 / $60,000 | $782 | $951 |
| Utah | $25,000 / $65,000 | $502 | $649 |
| Vermont | $25,000 / $50,000 | $329 | $415 |
| Virginia | $25,000 / $50,000 | $376 | $482 |
| Washington | $25,000 / $50,000 | $607 | $758 |
| West Virginia | $25,000 / $50,000 | $484 | $669 |
| Wisconsin | $25,000 / $50,000 | $364 | $469 |
| Wyoming | $25,000 / $50,000 | $305 | $372 |
Do I Really Need Bodily Injury Liability Coverage?
Unless you live in Florida, you are legally required to have at least the state minimum BI liability coverage. No matter where you live, carrying more than the state minimum coverage can protect you.
Let's say you live in a state where you have the state minimum: $25,000/$50,000. You are legally responsible for an accident and one person is injured.
Between their medical bills, legal fees, and income loss replacement, you are required to pay $35,000. Your insurance will only cover you for $25,000—the remaining $10,000 will have to come out of your pocket.
Now imagine multiple people were injured in that accident. The total costs for which you are responsible total $80,000. Your insurance company will only pay $50,000, leaving you with a $30,000 bill.
Keep in mind that if you choose not to carry bodily injury coverage in Florida, you are still responsible for all costs associated with the injuries of others in an accident. The insurance company won't pay anything.
How Do I File a Bodily Injury Claim?
If you were not responsible for an accident but experienced injuries, you will file a claim against the at-fault driver's insurance. If you were at fault, they will file against yours.
These are often called "third-party claims." To ensure a reasonable amount of your expenses are paid for by the other person's insurance, you must provide documentation and records from the accident.
For example, you may need to provide:
- Records of what happened
- Photos of the scene, vehicles, and injuries you sustained
- Doctor or hospital records of medical examinations and any bills from health care providers
- Receipts of all related expenses, such as legal fees or medical equipment
- Proof of lost wages if your injuries require you to miss work and potential income
Don't wait to do this—there are sometimes time limits on filing and if you miss the time limit, your claim may be denied.
What to Expect After Making a Claim
After you make a claim, you will hear back in a set time frame determined by your state and policy. Be prepared to discuss the incident with either insurance company, or a liability claim examiner or adjuster to provide clarification of the injuries and the cost of the claim.
Keep in mind you may be required to accept a settlement within a set time frame, so work with your insurance agent or an attorney to meet any deadlines.
Following a settlement, you will be asked to sign a release form to waive all future rights to pursue the person and company for further payments. Before you do this, talk with your attorney or agent to review the settlement. Be sure to account any future medical bills or expenses that might arise.
What if There Is a Bodily Injury Claim Against Me?
One of the first steps you should take is to hire an attorney, especially if you think the other driver is faking injury or their claim is fraudulent.
In most cases, if you have insurance and the other driver makes a claim, an insurance adjuster handling your case will take care of the matter. This person will investigate all aspects of the accident and determine how the company will handle it.
If your coverage limit is more than the claim, your insurance company will pay the claim and you won't have to do anything. If it's less than the claim, you will be contacted and should likely hire an attorney to help you understand your options and navigate any asset seizure.
If you're in an accident and don't have insurance, you and/or an attorney must investigate and defend against possible injury claims.
Make sure you never say anything that could be interpreted as admitting fault. Even if your case goes to court, you are still covered, and your insurance company should handle everything. However, you may see an increase in your monthly premium.
Other Types of Coverages
Your auto insurance is comprised of different coverages to fully protect you in the event of an accident. Many states have state minimum requirements for these coverages.
Check your state's DMV or talk to an insurance agent to ensure you have the insurance you need.
Liability Coverage
This pays to repair damage or treat injuries you cause to others in an accident you cause. The two main liability coverages are: bodily injury and property damage.
Property damage pays to repair or replace others' vehicles and valuables, as well as damage to their property. This can also include government property, such as lamp posts or fire hydrants.
- $100,000 for injuries per person
- $250,000 for injuries total per accident
- $50,000 for property damage per accident
Personal Protection Insurance (PIP)
This pays for lost wages and treatment of injuries to you or your passengers in an accident. In some states, PIP pays out before liability coverage.
Medical Payments
This covers you or your passengers' injuries in an accident, regardless of fault. It will not pay for lost wages, and limits are typically lower ($10,000 or less).
Uninsured And Underinsured Motorist
This coverage pays out if another driver causes an accident and doesn't have insurance or has insufficient liability coverage for you and your passengers' injuries or damages.
Collision
This pays to repair your car after an accident you cause. If your car is totaled, it will pay your car's estimated value.
Comprehensive
This covers theft and damages from either vandalism or nature, like hail damage or a tree falling on your vehicle.
Bottom Line
Even though a minimum limit is required by most states, it's smart to have more bodily injury liability coverage to ensure you and your assets are protected.
If you cause an accident, you can be responsible for paying for injuries to the others involved. If you don't have enough coverage, you may have to pay out of pocket.
Work with your insurance agent to determine how much bodily injury coverage you need to protect your interests.
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