Question: How Much Bodily Injury Coverage Should I Get?

What is a good auto insurance coverage amount?

Unless your income and assets are minimal, buy at least $100,000 per person, $300,000 per accident.

Property damage: Property-damage liability covers repair or replacement of other people’s cars and property.

State minimum limits average about $15,000..

How does bodily injury claim work?

If you cause a car accident that injures another person, bodily injury liability coverage helps pay for their medical expenses and lost income as a result of their injuries. This coverage may also help pay for your legal fees if you’re taken to court over an accident.

Does full coverage replace your car?

Comprehensive Coverage Comprehensive insurance helps to pay for physical damage to the vehicle or to replace it when the damage is not the result of a collision. It could be damage due to theft, wind, hail, or falling objects such as a branch or a tree.

Should I remove comp and collision?

It makes sense to cancel comprehensive and collision insurance if: The annual premiums for comprehensive and collision insurance exceed 10% of your car’s book value and. You have the cash available to repair or replace the car in the event of a loss.

What is the difference between bodily injury and personal injury protection?

Bodily injury insurance typically covers the expenses of the person who did not cause the accident and subsequently suffered injuries. … Personal injury protection (PIP) is often an extension of car insurance that covers economic damages.

Does bodily injury cover medical expenses?

Bodily injury liability is a type of coverage that’s generally a required by most states. If you’re at fault in a car accident that injures someone, bodily injury liability coverage pays for their medical expenses and lost wages that are a result of their injuries. It’s one of two types of liability insurance.

How much bodily injury car insurance do I need?

Liability for Bodily Injury – The minimum coverage for bodily injury varies by state and may be as low as $10,000 per person or $20,000 per accident. Many auto policies stop at a maximum of $300,000 or $500,000 per accident for Liability coverage.

How much does progressive pay for bodily injury?

Bodily injury per accident: $50,000 is the maximum amount your insurer will pay out for injuries per accident. Property damage per accident: $20,000 is the maximum amount your insurer will pay out for damage to someone else’s vehicle or property per accident.

Is comprehensive the same as full coverage?

Full coverage comprises two additional types of cover: Collision and Comprehensive insurance. Collision insurance is generally for damage from situations when you are driving. … Comprehensive insurance covers damage to the vehicle outside of driving situations, so for example, weather damage, fire or theft.

Should I carry collision insurance on an older car?

If your car is older, it may be time to drop comprehensive and collision and put the money you’re saving into an account to buy a new car when your current one dies. … Using the 10 percent rule, if your collision and comprehensive premiums cost $250 or more a year, it’s time to consider dropping the coverage.

When should you drop collision?

You should drop your collision insurance when your annual premium equals 10% of your car’s value. If your collision insurance costs $100 total per year, for example, drop the coverage when your car is worth $1,000. … The 10% rule for dropping collision insurance is not set in stone.

What is the difference between bodily injury and medical expenses?

Bodily injury liability coverage applies to injuries you or anyone insured under your policy becomes legally responsible for as a result of an accident. Medical payments coverage pays for reasonable medical expenses incurred by you or passengers in your vehicle regardless of who is at fault for the accident.

Can I sue for more than the defendant’s insurance policy limits?

If your damages are greater than the defendant’s insurance policy limits, you may be entitled to a judgment for more than the policy limits. You could potentially recover the remaining judgment by garnishing the defendant’s wages or putting a lien on their property.

How much bodily injury insurance is enough?

Even if your state doesn’t require liability insurance, it’s a good idea to have at least $500,000 worth of coverage that encompasses both types of liability coverage—property damage liability and bodily injury liability.

Does full coverage cover bodily injury?

Generally, full coverage is a combination of different kinds of auto insurance coverage as required by your state or circumstances. This usually includes, at a minimum: Liability coverage: This covers your liability to the other driver or their passengers for bodily injury and property damage.

When should I drop full coverage?

You should drop full coverage insurance on your car when the cost of the insurance premiums equals or exceeds the potential payout, should a covered event occur. … For example, an older car with high mileage may not be worth costly repairs, and you might want to save for a new car instead of paying for extra insurance.

What damage does car insurance not cover?

Repairs that result from regular wear and tear are not covered by car insurance. Other damage inflicted with malicious intent or during an accident is covered. Other people who drive the car. Only the people named in the car insurance policy – the insured — are covered.

Should I carry medical payments on auto insurance?

You might want to consider medical payments coverage even if you have health insurance and personal injury protection. Health insurance typically pays for medical expenses, but some policies exclude injuries related to a car accident. That can leave you on the hook for high out-of-pocket expenses.