Top Reasons To Buy Bodily Injury Coverage

Bodily injury coverage and personal injury protection (PIP) are two different forms of car insurance coverage with a mutual purpose―defer medical costs following an auto accident.

 

The Benefits of Bodily Injury Liability Insurance

Bodily injury protection is required in every state mandating liability car insurance. The benefits of this coverage cannot be fully appreciated until you're involved in a car accident and see how quickly medical expenses can climb.

Among its many benefits are:

• Financial peace of mind.

• Payment for the medical costs (up to your policy limit) of all involved persons injured by your driving error. This includes drivers, passengers, and pedestrians.

• Payment for lost wages.

• Payment for legal costs if you're sued.

Depending on the extent of the injury or injuries, bodily injury coverage can spare you from financial despair. Without it you could possibly spend the rest of your life paying off medical fees and other bills at the cost of all personal assets.

With so much at stake, you should, when purchasing bodily injury insurance, opt for higher amounts of protection. If you reside in a state requiring, at the minimum, a limit of $40,000 per accident, this means your insurance company will pay up to $40,000 worth of medical related costs; however, if the medical expenses say reach $85,000, you'll be the one responsible for paying the $45,000 difference.

 

The Benefits of Personal Injury Protection (PIP)

Personal injury protection, or what many refer to as a no-fault insurance, also comes with many benefits:

• Unlike liability protection, PIP will cover your medical expenses (up to your policy's limits) regardless if your driving error caused the accident.

• Pays for injury rehabilitation.

• Covers a portion of your lost wages due to time spent recovering.

• Pays for funeral expenses.

• Covers child-care expenses.

• Pays for home upkeep expenses.

Currently, PIP is only required in the District of Columbia and the following 12 states:

• Florida

• Hawaii

• Kansas

• Kentucky

• Massachusetts

• Michigan

• Minnesota

• New Jersey

• New York

• North Dakota

• Pennsylvania

• Utah

Adding PIP to your auto insurance policy is optional, however, in many other states.