Bodily Injury Liability
Bodily injury liability, what in the world is that? Let me try and break it down for you very simply and very quickly before you get too bored. So when you’re looking at your insurance policy under liability limits, you’ll see numbers that says something like 150,00/30,000, 50,000/100,000 or something like 100,000/300,000. That’s the bodily injury liability limits.
Now what does that mean? Let’s go with our example of 100,000/300,000. What that means is if you’re in a covered accident, it’s your fault, you cause bodily injury to other people, your policy will pay out $100,000 per person up to $300,000 per accident for their bodily injury/ medical injuries. A lot of times I get very frustrated because I have current clients and I have perspective clients who are getting quotes that say, “Hey, I have a super old car. There is no need for me to carry high liability limits. Just give me the state minimum.” That’s completely false.
Here’s why. You can do just as much damage and hurt other people just as easily in an old 1982 Honda Civic as you can in a brand new, super expensive 2020 Mercedes-Benz. And if you don’t believe me, come down to my office. I’ll run you over with the 1982 Honda Civic and then I’ll let you heal up for a few months and then I’ll run you over with a 2020 Mercedes-Benz. You can tell me which one caused the most damage to you, which one gave you the most medical payments. They’ll probably be about the same.
So it doesn’t matter what car you drive. It doesn’t matter how expensive it is. You need to carry correct liability limits. Here’s what we recommend – We recommend limits of $250,000 per person up to $500,000 per accident. And then on top of that, and we’ll talk about this in a future post, we recommend getting a one million dollar umbrella policy.
That’s the best way to protect yourself so that if you’re in an accident and you caused bodily injury to other people, your insurance policy hopefully will have enough coverage there to pay for all of the other party’s medical injuries so that you don’t get sued personally.
Can you imagine if you had the state minimum, which by the way is 15,000/30,000. That barely pays for the ambulance ride. They’re probably going to come after you personally because your insurance policy isn’t going to have enough to cover their medical injuries.
So do yourself a favor, help yourself sleep at night. Get coverage of 250,000/500,000 with the one million dollar umbrella, and it will help you sleep easy at night.