Bodily injury (BI) liability insurance for motorists is
required in most states. This insurance covers the driver
when a person is injured in a car accident and the accident
is the driver's fault. Typically the insurance will pay for
medical bills, hospital expenses, rehabilitation costs plus
any other damages for which the driver is found liable.
BI liability auto insurance is usually listed as
two numbers such as: 25/50
The first number is the maximum coverage for one person's
injuries in thousands of dollars; the second number is the
total coverage for all injuries sustained in one incident
in thousands of dollars. In this example the coverage would
be $25,000 maximum coverage for injuries to one person and
$50,000 maximum coverage for injuries to all persons in one
accident.
Many states require that the driver of a motor vehicle provide
proof of adequate bodily injury liability insurance coverage
at the time of registration, after an accident or when driving.
Non-compliance can result in fines, imprisonment or license
and registration suspension.
Most states have a minimum
amount of required bodily injury liability insurance,
however, insurance companies may be able to offer more substantial
coverage if desired. This increased coverage may cost much
less than the price of minimum insurance when calculated on
a percentage basis.
Other Auto Insurance Terms & Definitions
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