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Nearly every state in the United States requires vehicle owners to maintain a minimum level of car insurance in order to be able to operate their vehicles legally. Minimum coverage policies typically include bodily injury liability insurance. But knowing how much bodily injury liability you need will depend on where you live — and meeting the minimum protection may not be sufficient compared to the recommended amount of bodily injury coverage. It may be a good idea to know how much protection you are required to have by state law.
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Bodily injury coverage pays for the other party’s medical expenses if you are at fault in an accident. If you injure the other driver (or their passengers) in an at-fault accident, your bodily injury coverage will typically step in to pay. It’s important to know, however, that if the other party’s medical bills exceed the amount of bodily injury coverage on your policy, you are responsible for making up the difference.
If you don’t have the funds to pay, the other party could take you to court to recoup the unpaid losses related to the accident. To avoid what could be a significant out-of-pocket expense, it’s generally advisable that you carry sufficient bodily injury coverage. The best car insurance companies will help tailor a package that balances affordability with protection.
Bodily injury liability coverage can help pay several types of expenses, including:
As you can see, bodily injury liability coverage can cover a variety of expenses. However, it will not cover:
Most states require motorists to carry a minimum amount of car insurance. This usually includes bodily injury and property damage liability insurance. In no-fault states, drivers typically must carry personal injury protection (PIP).
When you research the compulsory coverages you must carry, you will likely see the requirements represented as three numbers, separated by forward slashes. For example, Arizona requires drivers to carry bodily injury and personal property liability coverages, with minimum limits of 25/50/15. Here is what each number means:
Although nearly every state requires bodily injury coverage, some exceptions exist, namely Florida, New Hampshire, Virginia and New Jersey. While these states may not explicitly require bodily injury coverage, they do have other mandates that drivers must meet to satisfy state requirements
In Florida, the only two coverages you are required to carry are personal injury protection (PIP) and property damage liability (PDL) insurance. The minimum coverage limits are $10,000 for PIP and $10,000 for PDL. The only time that Floridians are required to carry bodily injury liability insurance is after a DUI conviction. If you have been convicted of a DUI in Florida, you must carry bodily injury liability coverage for three years after your license has been reinstated.
Learn more: Florida car insurance laws
New Hampshire car insurance laws are unique. In fact, New Hampshire is one of the only states in the country that does not require car insurance. However, if you choose to purchase car insurance in New Hampshire, the minimum liability coverage requirements are 25/50/25. You’re also required to purchase uninsured/underinsured motorist insurance and medical payments coverage if you buy car insurance for personal use.
While Virginia does not technically require its drivers to carry car insurance, they must pay a yearly $500 uninsured motorist fee to waive the typical insurance requirement. Even if a driver opts to pay the uninsured motorist fee, the uninsured driver is still held liable for any damage or injuries they may cause in an accident.
Learn more: Virginia car insurance laws
There are two main policy types available in New Jersey: basic and standard. Although bodily injury coverage is required under a standard policy (and minimum coverage amounts were recently raised), this coverage is optional for those covered under a basic policy. However, drivers with a basic policy can still choose to carry bodily injury, but the maximum limit is quite low at $10,000 per accident.
Learn more: New Jersey car insurance laws
Even if you live in a state that doesn’t require bodily injury, waiving this coverage could have devastating consequences. According to the Insurance Information Institute (Triple-I), the national average cost of bodily injuries in an accident was $20,235 in 2020. For many drivers, this unexpected expense could be a tremendous hardship, leading to asset forfeiture and even bankruptcy.
Aside from the possibility of a hefty out-of-pocket payout, being involved in an at-fault accident without carrying bodily injury can cause license suspensions and fines, even if this coverage is optional. Take Florida, for instance. If you’re at fault in an accident, cause injuries and don’t carry bodily injury coverage, the DMV can suspend your license if you did not supply the proper documents to meet financial responsibility requirements. Additionally, you may be required to carry SR-22 insurance.
Although many states require drivers to carry a minimum amount of bodily injury liability insurance, that doesn’t mean the minimum coverage limits are sufficient if you cause an accident.
For example, California requires all motorists to carry at least $15,000 worth of bodily injury coverage to pay the medical bills of one person in an accident and $30,000 to cover the medical costs of more than one person. If you hit another driver and their medical bills were $50,000, you would have to pay the remaining $35,000 out-of-pocket.
Financial experts recommend that you carry at least $100,000 in bodily injury liability coverage for one injured person and $300,000 to pay the expenses of multiple victims in an accident. Most major car insurance providers will allow you to increase your coverage to these levels, perhaps even higher.
For maximum protection, you might also consider purchasing a personal umbrella liability policy. Umbrella insurance takes over when you reach your car insurance liability coverage limits. For example, if you cause an accident and the other driver sustains an injury that costs $350,000 in medical expenses but you only carry $300,000 in bodily injury liability coverage, your umbrella policy can cover the additional $50,000.
Although they start at $1 million in coverage, an umbrella policy is generally one of the cheaper insurance policies you can buy. A single umbrella policy adds an extra layer of liability coverage to your auto and home or renters policies.
What is property damage liability?
What is indemnity insurance?
How does auto liability work?
What is a collision deductible waiver?
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
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