In the United States, most states mandate that vehicle owners carry a minimum level of car insurance to legally operate their vehicles. These minimum coverage policies usually include bodily injury liability insurance. However, the required amount of bodily injury coverage varies by state, and meeting the minimum requirement might not provide adequate protection. It’s advisable to understand both the state-specific requirements and the recommended coverage levels to ensure you have sufficient protection.

What is bodily injury liability?

Bodily injury coverage helps pay for the other party’s medical expenses if you’re at fault in an accident. This coverage will typically cover the costs for injuries sustained by the other driver or their passengers. However, if their medical bills exceed your policy’s bodily injury coverage limit, you’ll be responsible for covering the difference.

If you’re unable to pay the excess amount, the injured party may take legal action to recover the unpaid costs. To avoid potentially substantial out-of-pocket expenses, it’s advisable to have adequate bodily injury coverage. The best car insurance companies can help you find a balance between affordability and sufficient protection.

What does bodily injury liability insurance cover?

Bodily injury liability coverage can help with several types of expenses, including:

  • Funeral Expenses: If an accident leads to the death of another person, this coverage can help cover the costs of their funeral and burial.
  • Legal Expenses: Should you be sued for causing bodily injury in an accident, this coverage can assist with attorney fees and any court awards.
  • Lost Wages: If the accident causes the injured party to miss work, bodily injury liability can compensate for their lost income during recovery.
  • Medical Bills: This coverage can help pay for a range of medical expenses, including emergency room visits, hospital stays, medical equipment, surgeries, doctor’s appointments, and rehabilitation.
  • Pain and Suffering: It can also cover compensation for the pain and suffering experienced by the injured party due to the accident.

What does bodily injury liability insurance not cover?

Bodily injury liability coverage can address a range of expenses, but it does not cover:

  • Medical Expenses for You and Your Passengers: To cover medical bills for yourself and your passengers, you will need medical payments or personal injury protection coverage.
  • Damage to Another Driver’s Vehicle: To cover damage you cause to another driver’s car, you need property damage liability coverage, which is typically included in minimum coverage policies.
  • Damage to Your Own Vehicle: Collision and comprehensive coverages are required to protect your vehicle from damage in an accident. Bodily injury liability coverage does not cover repairs to your own vehicle.

How much bodily liability injury insurance do you need?

Most states require drivers to maintain a minimum level of car insurance to drive legally. When reviewing a quote or policy, you’ll typically see bodily injury and property damage liability insurance included. In no-fault states, you may also need personal injury protection (PIP).

These required coverages are often listed as three numbers separated by slashes. For example, in Arizona, drivers must have bodily injury and property damage liability coverage with minimum limits of 25/50/15. Here’s what each number represents:

  • 25: $25,000 in bodily injury liability coverage per person. This amount covers medical expenses for injuries sustained by one person in an accident.
  • 50: $50,000 in bodily injury liability coverage per accident. This is the total amount your insurer will pay for all injuries in a single accident. If multiple people are injured, this is the maximum amount your policy will cover.
  • 15: $15,000 in property damage liability coverage. This covers repairs to another driver’s property if you are at fault in an accident.

These numbers indicate your policy’s limits. If an accident results in medical bills exceeding these limits, you will be responsible for paying the remaining costs out of pocket. Similarly, if multiple people are injured, your policy will cover up to the maximum limit for all injuries in that accident. Given that bodily injury liability can encompass significant expenses, having only the minimum coverage might not be sufficient, which is why experts often recommend opting for more coverage.

Is bodily injury coverage required in every state?

While most states require bodily injury coverage, there are exceptions. Specifically, Florida, New Hampshire, Virginia, and New Jersey do not have explicit mandates for bodily injury coverage. However, drivers in these states must meet other insurance requirements to comply with state laws.

Florida

In Florida, drivers are required to carry only two types of insurance: personal injury protection (PIP) and property damage liability (PDL), with minimum coverage limits of $10,000 each. Bodily injury liability insurance is not generally required, except for individuals convicted of a DUI. If you’ve been convicted of a DUI in Florida, you must maintain bodily injury liability coverage for three years after your license is reinstated.

New Hampshire

New Hampshire has distinctive car insurance laws, as it is one of the few states that does not mandate car insurance. However, if you decide to purchase car insurance in New Hampshire, you must meet minimum liability coverage requirements of 25/50/25. Additionally, if you choose to buy car insurance for personal use, you are required to include uninsured/underinsured motorist coverage and medical payments coverage.

Virginia

Virginia does not technically mandate car insurance, but drivers must pay an annual $500 uninsured motorist fee to bypass the standard insurance requirement. Despite paying this fee, drivers are still liable for any damages or injuries they cause in an accident. Note that starting July 1, 2024, this option to pay the uninsured motorist fee will no longer be available.

New Jersey

In New Jersey, there are two primary policy types: basic and standard. Under a standard policy, bodily injury coverage is mandatory, and the minimum coverage limits have recently increased. Conversely, bodily injury coverage is optional under a basic policy. While drivers with a basic policy can opt for bodily injury coverage, the maximum limit is relatively low at $10,000 per accident.

Consequences for driving without bodily injury liability insurance

Even if you live in a state where bodily injury coverage is not mandatory, skipping this insurance could lead to severe financial repercussions. The Insurance Information Institute (Triple-I) reports that the national average cost of bodily injuries from an accident was $24,211 in 2022. For many drivers, covering such an expense out of pocket can be a significant financial strain, potentially leading to asset forfeiture or bankruptcy.

In addition to the potential financial burden, being involved in an at-fault accident without bodily injury coverage can result in license suspensions and fines, even in states where this coverage is optional. For example, in Florida, if you’re at fault in an accident and don’t have bodily injury coverage, the DMV may suspend your license if you fail to provide the necessary documents to meet financial responsibility requirements. You might also be required to obtain SR-22 insurance.

Are each state’s bodily injury liability limits enough?

While many states require drivers to have a minimum amount of bodily injury liability insurance, these minimum limits may not be sufficient if you’re at fault in an accident.

For example, in California, drivers must carry at least $15,000 in bodily injury coverage per person and $30,000 per accident. If you cause an accident and the other driver’s medical bills total $50,000, you would need to cover the remaining $35,000 out of pocket.

To better protect yourself, financial experts recommend having at least $100,000 in bodily injury liability coverage per person and $300,000 for multiple victims. Most major car insurance providers allow you to increase your coverage to these levels or even higher.

For additional protection, consider purchasing a personal umbrella liability policy. This policy provides coverage beyond your car insurance limits. For instance, if you cause an accident with $350,000 in medical expenses but only have $300,000 in bodily injury coverage, your umbrella policy can cover the remaining $50,000.

Although umbrella policies typically start at $1 million in coverage, they are generally one of the more affordable options available. They provide an extra layer of liability coverage on top of your auto and home or renters insurance policies.