October 26, 2010

3 Tips For Choosing Bodily Injury Liability Coverage

It is very important to understand what bodily injury liability coverage is when researching auto insurance rates to purchase auto insurance. Bodily injury liability coverage is a specific type of coverage that protects the driver in the event of injury to others in the case of an accident. Bodily injury liability coverage reflects the possibility that the insured may at some point in the future become involved in an auto accident which causes bodily injury or even death to others. This coverage may never be needed, but if it is needed, it is essential to avoid disastrous financial consequences from facing this situation while uninsured.

There are three tips that can help when choosing bodily injury liability coverage. The first is to understand thoroughly what this coverage is before purchasing a policy. This type of coverage does not cover injury or death to the insured. It only covers injury or death to others who may be involved in an auto incident along with the insured party. Bodily injury liability coverage will protect the insured from any potential suit or claim should one be filed, and will place the responsibility on the insurance carrier for reimbursing the injured party for claims. Since bodily injury liability covers only injury to persons and not to other vehicles or the insured's vehicle, it is not meant to assist with auto repairs or replacements that may result from the same incident.

The second tip is that the coverage limits for bodily injury are the choice of the insured, and are selected during the process of choosing auto insurance rates. Coverage always indicates maximum payouts per person injured, on a per incident basis. The choice of limits is critical to avoid infringement on personal assets in the event of an auto accident. Limits that are too low may be costly personally, and limits that are too high may serve as an unnecessary drain on the monthly budget. Limits are in part set by assessing current and future personal financial worth, so this is an especially important area to pay attention to when choosing the limits for bodily injury coverage.

The third tip is to remember that most states require that auto insurance contain bodily injury insurance clauses, and that this coverage may become necessary regardless of which driver is at fault. Some states are no fault states and this becomes especially important coverage in those states. Many insurance carriers provide online calculators to assist prospective clients with determining how much coverage to obtain, and it is also helpful to speak with a licensed insurance agent to review their recommendations for the best level of coverage for the individual insured's needs.