At least some amount of bodily injury coverage is legally required for drivers in almost every state. The coverage is designed to pay for any medical bills for the driver or passengers in another vehicle if you are found at fault after an accident. If your bodily injury policy is not high enough to cover the medical bills, your personal assets can be placed under a lien to compensate the injured parties.
Higher Bodily Injury limits are a lot cheaper than you think. Run a car insurance quotes comparison online to get the best rates. If these fire reasons to carry higher limits don’t convince you, the cheap rate should.
1. Avoid Costly Legal Fees – If someone gets hurt and your insurance limits aren’t high enough to cover their medical treatment, they could decide to take you to court for the rest of the money they need to pay off their medical bills. Court settlements tend to be much higher than the cost of paying for extra coverage in the first place. Going to court will cost you time and it can be expensive before you even reach a settlement because you will need to hire a lawyer and pay court costs.
2. Legal Requirements are generally too Low – Even though most states include bodily injury limits in their minimum legal requirements for car insurance, the limits tend to be the lowest possible. The state levels are meant to ensure that every driver is carrying at least some insurance. They don’t want to make the limits too high so that even someone working for minimum wage can still afford to pay the minimum insurance to stay legal. You should think of the legal limit as the bottom level. It will probably be enough to cover minor injuries, but it will not be anywhere near enough to cover something serious.
3. Higher Limits Reduce the Impact on Personal Assets – Carrying higher bodily injury limits gives you a better chance of paying for someone’s injuries without having to dip into your own personal accounts. If the injuries cost more than your current limits, you could end up paying the extra from your savings account, investments, or even through the forced sale of property.
4. Protect Yourself in Lien Situations – When a court rules that you owe the other driver more money for bodily injury, they have the right to place a lien against your assets. That means that your wages could be garnished or any of your property could be seized in order to cover your responsibility. It is much easier and less expensive to pay for a higher bodily injury limit in the first place so that you’re never in a position where your personal assets could be taken.
5. Allows you to Increase Uninsured Motorist Coverage in Some States – Some states, like Florida, increase your uninsured motorist coverage when you increase your bodily injury limits. The higher uninsured motorist coverage will help you pay for any damages or injuries to yourself or any of your passengers through your own insurance company if you are ever involved in an accident with someone who is uninsured. When bodily injury and uninsured motorist coverage are higher, your expenses after an accident will be substantially lower.
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