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What does bodily injury auto insurance cover? If you’re curious about this topic, you aren’t alone. This type of insurance is important because it protects yourself and others in an accident. Let’s review the basics of it, so you can understand why this insurance is essential for every responsible driver on the road.

Definition and Why It Matters

Bodily injury coverage is essential in a car accident because it helps pay for other people’s medical expenses if you injure them. This coverage applies to:

Other drivers and their passengers.

Pedestrians.

Your passengers, if they are not from your household.

In many states, having liability insurance is mandatory, and it can also provide coverage for legal fees in case of a lawsuit resulting from a car accident, given that you have sufficient coverage.

The significance of having this type of insurance cannot be overstated, as it serves as a financial safety net during such distressing times. While the minimum requirement for bodily injury coverage may vary from one state to another, opting for as much coverage as you can afford is crucial to ensure comprehensive protection.

However, it’s crucial to understand that bodily injury coverage doesn’t pay for your medical expenses or any repairs to your car or the other driver’s car. You must handle those costs alone unless your auto insurance includes additional coverage.

What Exactly Counts as Serious Bodily Injury?

In auto insurance, “serious bodily injury” refers to significant physical harm sustained by an individual due to a car accident. The exact definition and criteria for serious bodily injury may vary depending on the insurance policy and the laws of the specific jurisdiction where the incident occurs.

However, in general, serious bodily injury involves injuries that are severe and have a substantial impact on the victim’s life, health, or ability to function. Examples of injuries that may be considered severe bodily injuries in auto insurance include:

Fractures and broken bones

Traumatic brain injuries (TBI)

Spinal cord injuries

Internal organ damage

Disfigurement or permanent scarring

Loss of limb

Whether an injury qualifies as serious bodily injury is often based on medical reports, expert opinions, and the impact of the damage on the victim’s life. Insurance companies may evaluate the medical records, treatment plans, and prognosis of the injured person to assess the severity of the bodily injury and calculate the appropriate compensation.

What Does Bodily Injury Auto Insurance Cover?

Under bodily injury coverage, your insurance policy covers various expenses that a third party can file against you. These expenses include:

Medical Bills: This covers the injured party’s hospitalization, follow-up care, and other related medical expenses.

Lost Wages: If the injured person is seriously hurt and unable to work, your bodily injury coverage compensates for their lost income. The insurance company will determine the amount based on their inability to work due to the injury, subject to certain limits depending on their location.

Legal Fees: In the event of a lawsuit filed by the other party, your bodily injury coverage steps in to cover your legal defense expenses. This particular aspect of coverage addresses your costs.

Pain and Suffering: If the injured individuals experience emotional trauma or distress from the accident, this coverage may address their pain and suffering.

Funeral Costs: If the accident leads to someone’s death, your bodily injury coverage helps with the expenses associated with funeral and burial arrangements.

What Does Bodily Injury Auto Insurance Not Cover?

While bodily injury liability coverage offers protection for various expenses, there are specific items it does not cover, such as:

Medical Expenses for You & Your Passengers: To address the medical bills for yourself and your passengers, you must have medical payments or personal injury protection coverage.

Damage to Your Car: In case of an accident caused by you, bodily injury liability coverage does not extend to cover your vehicle’s repairs. For such protection, you would need collision and comprehensive coverages.

Damage to Another Driver’s Vehicle: You will require property damage liability protection to cover any damage you cause to another driver’s vehicle. This type of insurance is usually required with a minimum coverage policy.

How to File a Bodily Injury Auto Insurance

Now that you know “what does bodily injury auto insurance cover,” it’s time to understand how to file a claim. When filing a bodily injury liability claim, you are essentially making a “third-party claim,” which means you seek compensation from the at-fault driver’s insurance company.

To ensure that your expenses are adequately covered, it’s essential to document and keep a record of the accident. Before proceeding with the claim, make sure you have the following prepared:

Provide a detailed description of the accident and what occurred.

Gather all photos of the accident scene and any injuries you sustained.

Keep records of medical examinations and bills from doctors and healthcare providers.

Save receipts for all expenses related to the accident.

If the damages caused a miss work and income, obtain documentation from the employer to verify lost wages.

After you’ve submitted the claim:

You should receive a response within a specified time, depending on your state’s regulations and insurance policy. If there’s a delay, they should explain it to you.

Be ready to discuss the incident in detail. The insurance company’s liability claim examiner or adjuster may seek clarification to assess the extent of your injuries and the overall cost of the claim.

Remember that there might be a time limit for collecting compensation for your claim. State laws may require you to accept a settlement offer within a specific period. If you disagree with the settlement, you can file a lawsuit.

When it comes to signing the release form:

Take your time signing the release form. The insurance company will request that you waive any future rights to seek further payments from the responsible person or company after the settlement.

Consider potential future medical bills and other expenses. Having an attorney review and release the amount before making any decisions is a good idea.

Conclusion

So, what does bodily injury auto insurance cover? It includes medical bills, lost wages, legal fees, and funeral costs. Now, do you need bodily injury coverage? The answer is likely yes if you want to drive anywhere legally. However, you might be exempt from this requirement in some states if you meet specific criteria.

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What Does Bodily Injury Auto Insurance Cover?

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Calculating and Comparing New Jersey Insurance Quotes Online

If you own a motor vehicle, chances are you also own an auto insurance policy. In fact, most US states

The state of Illinois is among the states where possession of an auto insurance policy is mandatory. In Illinois, every driver must carry proof of insurance starting from a certain minimum coverage. This is because Illinois is known as one of the fault states. In these states, the driver who causes an accident is responsible for covering the resulting damage and injuries. Because of this mandate, car owners often opted for cheap full coverage auto insurance in Illinois.

Auto Insurance Law in Illinois

Auto insurance is mandated in the state of Illinois under the Illinois Vehicle Code, specifically in Chapter 7, Article VI – Motor Vehicle Safety Responsibility Law (625 ILCS 5/7-601 et seq.). This law mandates that all motor vehicle owners operating on the public roads of Illinois possess auto insurance coverage that meets the state’s minimum requirements.

The minimum liability coverage mandated by the state government of Illinois is 25/50/20. The numbers are the amount of money the insurance will cover for you in case an accident happens:

$25,000 for bodily injury per person

$50,000 for bodily injury per accident

$20,000 for property damage per accident

These coverage limits ensure that individuals involved in an accident are financially protected up to a certain extent if they are found to be at fault. Aside from those coverage, the standard auto insurance policy mandated by the state will also provide uninsured/underinsured motorist coverage (bodily injury), which will cover the following:

$25,000 per person

$50,000 per accident

The aforementioned coverage is for the minimum amount drivers are mandated to obtain by the state. If car owners want to buy a policy with better coverage, they are free—or even encouraged—to do so. However, better coverage will translate to an increased price drivers will have to pay for the policy.

Drivers operating their vehicles without carrying proof of their insurance are basically driving against the law. If the driver fails to provide proof of insurance when requested by police officers, the consequences may include fines, suspension of their driving license, and vehicle impoundment.

The fine is set to be around $500 to $1000. On the other hand, the driver could get their license suspended for up to three months plus another $100 reinstatement fee.

Why Do I Need Auto Insurance?

The primary reason behind the compulsory requirement of auto insurance ownership in most US states relates to driver liability and responsibility. In simple terms, if you caused an accident, you are responsible for paying for the damage caused in that accident, even if you sustained injuries or damage.

This responsibility to cover for the damage and injuries resulting from an accident will put most people at risk of financial struggles. Having these mandatory coverages will benefit both parties. It will provide the victim with financial aid to treat their injury and pay for the sustained property damage. On the other hand, it will not put the person causing the accident on the brink of financial bankruptcy.

What “Full Coverage” in Auto Insurance Means?

Usually, auto insurance policies are divided into two main categories: liability-only and full coverage. As the name suggests, liability-only policies only cover the liabilities resulting from an accident the policyholder caused. The liabilities covered in this type of policy are Bodily Injury and Property Damage.

Despite its name, a full coverage policy does not really cover everything from the get go. The term refers to policies that cover both the sustained and inflicted injuries and damage to the two parties involved in the accident. In other words, it includes both liabilities as well as collision and comprehensive coverage.

What a full-coverage policy includes in its protection is as follows:

Bodily Injury Liability – covers the injuries sustained by the person involved in an accident caused by the policyholder.

Property Damage Liability – covers the damage to properties (cars, buildings, houses, etc.) resulting from an accident caused by the policyholder.

Personal Injury Protection (PIP) – covers the injuries the policyholder and other persons covered by the policy sustained in the accident they caused.

Collision – covers the damage sustained if the car registered in the policy crashes into other cars or objects.

Comprehensive – for if damage to the vehicle registered in the policy is caused by non-collision (theft, vandalism, natural disasters, etc.).

Uninsured/Underinsured Motorist Coverage – for damage caused in an accident involving an uninsured motorist or if the insurance of one of the parties is worth less.

Comparing Auto Insurance in Illinois

Like in many other states, the cost of auto insurance in Illinois will vary depending on the insurance company. It’s up to car owners to try and find the policy that offers the best value for them.

Since Illinois mandates car owners to have at least the minimum coverage regulated by the law, let’s use it as our baseline. The average annual cost of a minimum coverage mandated by the state of Illinois is $552. Keep in mind that this minimum coverage DOES NOT offer a full-coverage policy.

On the other hand, a full-coverage policy in Illinois will cost an average of $1,806 annually. While it is true that it costs more than twice the average annual of the minimum state-mandated coverage, it covers significantly more as well. Remember, this is an average; the actual price will vary between each insurance company.

With that said, these are some insurance companies available in Illinois as well as the price of their full-coverage insurance policy:

Geico – $89 monthly average; $1,068 annual average

Auto–Owners – $115 monthly average; $1,380 annual average

Travelers – $130 monthly average; $1,557 annual average

Erie – $103 monthly average; $1,232 annual average

Mercury – $97 monthly average; $1,168 annual average

To sum everything up, the minimum coverage mandated by the state of Illinois will be sufficient in most cases, especially if you are a safe and responsible driver.

However, a full-coverage policy will offer maximum protection to the owner and other persons involved in the accident. This is why finding cheap full coverage auto insurance in Illinois is a reasonable investment for most drivers.

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Preparing for the Unforeseeable: What Coverage Do I Need for Auto Insurance?

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No matter if you own, lease, or finance a car, getting an auto insurance policy to protect you and your vehicle is a great investment. Yes, it will add to the cost of owning or driving a car, but it will also add an extra layer of financial security when you and your car are caught in an accident. New car owners might need an explanation of auto insurance coverage, so here it is!

Auto Insurance in a Nutshell

Automobile insurance, sometimes also called car insurance or vehicle insurance, is a type of insurance coverage that provides financial securities to motor vehicle owners—or in this case, car owners—when accidents happen. Auto insurance policyholders will be protected against losses or damage that may occur to the vehicle, persons, or property caused by an accident or natural disaster.

Why do we need this financial protection, you may ask. Well, let’s say you are involved in a crash when driving home after buying groceries. You managed to get out mostly unscathed, except for a few cuts and a dislocated shoulder. However, your car got its windshield shattered, its hood ripped off, and its headlights smashed. Imagine the amount of money you’d have to spend to cover all the damage and injuries you sustained.

If you do not own an auto insurance policy, you could easily go penniless just from this accident alone. If you do own an auto insurance policy, your insurance company will pay most, if not all, the costs for mending the damage and injuries according to the policy.

The Six Types of Auto Insurance Coverage

Even though almost all the states in the US mandate drivers to obtain auto insurance, most mandatory insurance coverage only provides protection against liability. This ensures that all drivers will have access to protection at a more affordable price. Of course, you can opt to add more coverage to your policy if you are willing to pay extra.

In general, auto insurance policies are grouped into two general categories: liability-only policy and full-coverage insurance. A liability-only policy only offers coverage for bodily injury liability and property damage liability. Full-coverage insurance offers coverage for both liabilities as well as collision and comprehensive insurance.

Usually, a state-mandated Standard Policy for auto insurance will include PIP, Bodily Injury Liability, and Property Damage Liability. However, other coverage will still be available as an option from the insurance company. Below is the explanation of auto insurance coverage commonly offered by insurance companies:

1. Bodily Injury Liability

If you caused an accident that inflicted bodily harm to other people, you are responsible for paying for their treatment. This coverage will pay for the treatment, rehabilitation, funeral expenses, legal fees, and other costs related to treating bodily injuries.

2. Property Damage Liability

When an accident happens, sometimes it causes damage to nearby properties. If you have Property Damage Liability in your policy, the insurance will help you to pay for repairing or replacing the damaged property. However, this coverage seldom covers damage to your own car. You will need different coverage to pay for that damage.

3. Personal Injury Protection (PIP)

While Bodily Injury Liability coverage protects the persons you injured in an accident, Personal Injury Protection (PIP) protects you or other persons covered under your policy.

4. Collision

Accidents usually damage the vehicle, especially when it collides with objects like other vehicles, road signage, etc. Regardless of who is at fault, collision insurance covers the damage your vehicle sustained in an accident. It’s rarely offered on its own and is usually tied with comprehensive insurance.

5. Comprehensive

Non-collision incidents do happen, and it’s more common than you might think. This coverage offers protection from damage caused by an act of vandalism, weather, theft, animals, falling objects, and natural disasters.

6. Uninsured/Underinsured Motorist Coverage

This insurance will cover bodily injury or property damage sustained in an accident caused by an uninsured driver. It will also cover you if the person causing the accident is insured but has less coverage than you.

Calculating Which Coverage You Need

After a somewhat brief explanation of auto insurance coverage, it is time for you to calculate which coverage you need for your car. In most situations, obtaining the minimum coverage mandated by the state government is enough to protect you from minor damage or injuries. It covers less privilege, but it is the most affordable policy you can get.

The average annual cost of these minimum coverage policies varies by state. It ranges from $223 in the state of Iowa all the way up to $1,371 in New York. As a comparison, the annual cost for a full coverage policy in Iowa and New York is $1,315 and $3,139, respectively. These numbers show that while car insurance is mandated in almost all states, the annual cost for a full-coverage policy is not really affordable for everyone.

Deciding on which auto insurance coverage you will need to acquire comes down to two things: your financial situation and the car itself. Ideally, everyone wants to be fully protected by their insurance. Realistically, not everyone can afford a full coverage policy. This is why some state governments also mandated that an affordable policy be available for all insurance companies operating in that state.

Now, if you can afford the full coverage, the other thing you have to consider is the car itself. For leased or financed cars, a full-coverage policy is the best option, not to mention that some rentals or dealerships may require you to buy the full-coverage policy.

If it’s an older or secondhand car with high mileage, the value of the car itself has diminished to the point that collision and comprehensive coverage are not worth it anymore. However, you might still want full coverage for old cars that are considered “antique”. These cars are often treated as historical pieces, and their value will actually increase the older they get—but only if it’s in good condition.

The key takeaway based on the explanation of auto insurance coverage we discussed is that better coverage is not always a better option. Sure, a full-coverage policy is the ideal choice. However, in most cases, a minimum coverage policy mandated by the state will do just fine.

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