Bodily injury liability coverage applies to injuries you (the policyholder) cause to someone else (the third-party). If you drove an accident and are at fault, bodily injury liability coverage helps cover the other person’s medical cost and lost income due to their injuries. Sometimes this coverage may also help pay for your legal fees over an accident that you caused. However, a bodily injury does not cover any cost you may get in the accident. It is deemed “third-party” insurance because it only protects other drivers and passengers, not you.
What Does Bodily Injury Liability Cover?
Bodily injury liability coverage may help cover the following three types of costs:
Medical Expenses
Bodily injury liability coverage helps pay for the third party’s emergency services and medical care if you are the at-fault driver in a car accident. Depending on how much content you purchase, it may also help cover follow-up doctor visits and other associated costs, such as buying crutches or a wheelchair.
Compensation For Lost Wages And Income
If you caused an accident and the other driver needs to attend months of physical therapy as part of the recovery process, your bodily injury coverage might cover the expenses. Or, maybe the injured driver loses income or wages because he cannot work or perform his normal functions or responsibilities at his workplace. Your bodily injury liability coverage may help pay for the compensation in this scenario. The limits on the amount of payment the injured driver can receive for lost income depend on the amount of coverage you purchase.
Legal Fees
After an at-fault accident resulting in injuries to the third party, you could be summoned to court by either the injured party or their insurance company. It outrightly will require you to seek legal counsel. Bodily injury liability coverage can also pay for your legal fees.
How Much Bodily Injury Liability Cover Do I Need?
When buying bodily injury liability coverage, there’s always a minimum liability coverage limit you must purchase. It’s a good thing to check with your insurer to determine how much the policy is appropriate. You should also note that you can buy more coverage by increasing your liability limits. Furthermore, keep in mind that if the injured driver’s medical costs exceed your bodily injury liability coverage limits, you will have to pay out of pocket to cover the remaining expenses. That’s why it’s essential to consider how much bodily injury liability coverage would be enough for you — and why you may want to purchase higher bodily injury liability coverage.
Bodily Injury Liability Policy Limits
A bodily injury liability policy is subject to a limit. This limit is the maximum amount of money your auto insurance coverage will pay towards a covered claim. Bodily injury liability coverage has typically two policy limits:
- A per-person limit; and
- A per-accident limit.
Per-Person Limit
The per-person limit applies to each individual injured in an accident. As an example, let’s say your per-person liability limit is RM 50,000. If you caused an injury to a person, your insurance provider would pay no more than RM 50,000 for all of their medical expenses.
Per-Accident Limit
The per-accident limit applies to an accident in which multiple individuals are injured. So let’s say your per-accident limit is RM 200,000. It implies that if you are at fault in a car accident that injures two or more people, your insurer’s highest pay for bodily injury liability for their combined expenses is RM 200,000.
