What to Watch Out for with the Bodily Injury Liability Coverage of Your Car Insurance
The last thing which you want to think about when buying a new car or renewing your auto insurance policy is causing injury to someone in an accident. However, as a responsible person you must provide for all risks. Since the bodily injury liability coverage is a bit more complex, it is worth your special attention. Use the information and tips shared below to make the right decisions.
The Tricky Limits Explained
As you probably know, liability insurance covers both property damage and bodily injury. However, for the latter there are two limits (maximum amounts which can be paid out) instead of one. The first one is the liability coverage per person injured and the second one is the coverage per accident.
You will notice that when it comes to the legally required limits, in many states the one per accident is around one and a half times greater than the one per person. This means that in case two people suffer injuries, it will not be possible for the maximum individual amount to be paid out to each one. Of course, the risk of two people suffering major injuries is not very high, but it pays off to provide for it when buying car insurance.
Considering Everything Included
It is common for car owners to set low bodily injury liability coverage limits in their desire to get the cheapest auto insurance possible. However, this could be a mistake for two main reasons. Firstly, medical costs have risen dramatically over the past years primarily due to the advancement in many types of treatments.
Secondly, the compensation which an injured person can demand may include not only medical expenses, but also the income lost due to their inability to work for a certain period of time. Some people even want to get compensated for any emotional suffering that they have endured. In case an injured party files a lawsuit against you, it makes sense for the bodily injury liability coverage to provide for the cost of your legal defense.
Sufficient Coverage without Overspending
In addition to the estimating how much coverage to buy, you should also take into account the factors which will affect your premiums. These include age, gender, marital status, driving record and even your credit score. You have control only over the latter so make sure you improve it as much as possible to get cheap auto insurance.
If you are buying a new car, consider models which are considered low-risk to secure a lower premium. If you already have a vehicle, lower mileage could help you get cheap car insurance. This is also extremely helpful when it comes to renewing your policy.
Undoubtedly, the easiest way to save is to shop around. You may want to use a chart for comparing auto insurance quotes, especially if you have collected a good number of those. Outline the criteria which are most important to you and compare the different options based on them.
In conclusion, when it comes to bodily injury liability, your top priority should be to get sufficient protection and to come up with ways to get cheap insurance without reducing the coverage amount.