What Is Bodily Injury Liability Insurance?

Bodily injury liability insurance is a type of insurance that is attached to car insurance and pays for physical harm in the event of an accident. This does not cover medical expenses for the driver, but it does cover medical expenses for passengers and the other driver who was hit. Most car accidents with bodily harm result in legal proceedings during which the parties decide how much money must be paid and to whom, and bodily injury liability insurance covers these legal costs. If the accident causes a fatality, this insurance also covers funerary costs for victims other than the insured driver.

Car insurance is a legal requirement in many areas, and there are often several types of insurance wrapped together in car insurance. Bodily injury liability insurance is one of these, and most regions and countries that make car insurance a necessity also force providers to include this insurance in their packages. This is because hospital and medical fees are a leading source of bankruptcy, and this keeps people from going broke. The primary reason for this insurance is to cover bodily harm, along with lost wages and rehabilitation costs.

Some insurance types pay the driver if his body is injured during an accident or his car is damaged. With bodily injury liability insurance, the driver only gets liability coverage. This means, if the driver is found at fault for an accident, then this insurance will cover medical expenses for the other driver and any passengers, but not the driver holding the insurance. If the driver is not found at fault, then the other driver must cover medical expenses.

While some accidents may result in a clean agreement in which both parties agree on who is responsible and how much he must pay, many accidents that result in injury go to court. This is where the parties reach an agreement on what the driver is responsible for paying — including pain and suffering costs, rehabilitation and long-term care — but this often causes large legal expenses for the driver holding the insurance. Any legal costs that are accumulated because of the accident are covered by bodily injury liability insurance, either in full or in part.

When an accident is bad enough, it can result in the death of the other driver or passengers. Just like hospital and medical costs, funerary costs are high and can drive people to bankruptcy. In this case, bodily injury liability insurance will cover funerary costs. Also just like the medical costs, funerary costs will not be covered for the driver holding the insurance.