subject: All about Bodily Injury on Insurance Rates [print this page] All about Bodily Injury on Insurance Rates
In order to operate a vehicle on a public road, you are required by law to have at the very least liability insurance. Much of a premium's cost comes from this coverage. By having a higher deductible, you can reduce your premiums, but you risk paying a lot more should you ever be at fault in an accident.
Bodily injury liability covers the medical expenses accrued by other people involved in an accident for which you are to blame. They might be the driver or passenger of another car or a pedestrian that you hit crossing the street. The coverage also covers passengers in your car that are injured.
States set minimum limits on bodily injury insurance that you are required to maintain. However, the insurance company will offer you much more than is required by law. This additional coverage will cost you a little more, but will protect you in the case of a lawsuit or an extremely large medical bill. A typical policy might offer $25000/$500,000 coverage for a certain monthly cost. In the case of an accident, the insurance company will pay up to $25,000 to each person injured, not to exceed $500,000 in total. With today's medical costs, $25,000 can be reached very quickly. All other costs will come out of your pocket. A simple accident when you are under insured might even force you into bankruptcy.
The price you pay for bodily injury liability coverage will vary according to several factors. The insurance companies will consider your age, driving record, marital status, type of vehicle and many other factors to determine your rate. To a certain extent, location will also change the price of coverage. Those who live in crowded cities will almost always pay more.
If you have a lot of assets that could be forfeited in a lawsuit, it is well worth the few extra dollars you pay each month for additional coverage. Something called an umbrella policy will cover all the little gaps and loopholes in your regular policy, protecting you from litigation.
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