Do you know what your Bodily Injury Limits are?
You may see them listed on your insurance policy as either BI or spelled out as bodily injury. These limits start as low as 25/65 (state Minimum). However, higher limits are available. The most common are 50/100, 100/300, and 250/500. What do these numbers mean and what are they for?
To start off there is one key fact that you need to remember: your bodily injury coverage is there to cover your legal liability for others that you injure as the result of a crash. The key word in that description is ‘others’.
So let’s say you have a coverage of 100/300 on your insurance, the first number ’100′ is the amount that your insurance will pay per person in the event of a crash for Bodily Injury expenses. This number is multiplied by 1000, so you would have $100,000 per person of coverage. The second number ’300′ is to total amount per crash that your insurance company will pay. So let’s say you run into a van carrying a family and their combined medical expenses are $400,000 for injuries sustained during the crash. How much will your insurance pay if you have 100/300?…$300,000. So what about the other $100,000? They come after you for the balance. This is where Umbrella coverage comes in, but we will get to that at another time.
Now here is the kicker, let’s say that someone hits you and they do not carry insurance. You carry limits of 100/300. Because of this accident you are sent to the hospital, how much will your insurance pay out to help you?…Nothing, unless you carry Uninsured Motorist and Underinsured Motorist (UM and UIM). UM and UIM are bodily injury limits that you can add to your coverage to protect you in the event that the at-fault parties insurance is insufficient or non-existent.
Please feel free to ask my any questions that you may have about your coverage.
I hope that now you may be a little more clear on what your bodily injury limits are and how they work.
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