Auto Insurance Coverage: Bodily Injury and Property Damage

Bodily Injury and Property Damage Liability insurance coverag is normally a mandatory coverage on your auto insurance policy. These protections covers your legal liability for a covered accident that involve injury to others or property damage damage to someone's personal property. When you purchase your auto insurance policy, you are provided many coverage options, based on that selection the coverage for this protection is provided up to the limit of liability you select.

If your limits are $15,000/$30,000/$10,000, this means:

  • No more than $15,000 would be paid per person for Bodily Injury
  • No more than $15,000 would be paid per person for Bodily Injury
  • No more than $10,000 would be paid per accident for Property Damage

Suppose you are at-fault for an accident where two passegners of a vehicle were injured and there was damage to their vehicle. The medical bills for the two injured parties totalled $2,500, with one injured party’s bills totalling $1,000 and the other’s medical bills were $1,500. Additionally, the damage to the other party’s vehicle was a tatal of $5,000.

In this senarior, all injuries and damages would be covered because they fall within the limits of liability you selected. This si because each person's injuries were less than $15,000, and the amount for all injuries was less than $30,000. The other vehicle's damage also was below the $10,000 Property Damage Liability limit that you selected..

If you had selected these same liability limits, and the damages to the injured parties and the property damage that resulted had been over $15,000 per person, and $10,000 to the property, you could be personal responsible for the damages that exceed your limits, putting your personal assets at risk.