If you ever get into a car accident, one of your first concerns would be if anyone is injured or not. Bodily Injury Liability Insurance deals with such kinds of issues.
If, during a car accident, you cause any kind of injury to the other party, bodily injury liability insurance kicks in and helps you pay for the damages caused. It’s used when a motor vehicle injures or kills someone, or damages someone’s property due to the driver’s negligence.
You may ask why it is necessary for people who drive with utmost care. The fact is that even the best hands on the wheel can be involved in a car accident. It will be difficult to deal with financial burdens which will result from such accidents.
The damages are only limited to the victim’s expenses on medical treatment. Also, it covers any lost wages due to their inability to work owing to injury. In some cases, this coverage may provide a cover for the legal fees. This is for when you are sued for the damages caused.
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What is Covered Under Bodily Injury Liability Insurance?
A Bodily Injury Liability Insurance policy will help you offset a variety of costs. These costs are usually related to the damages that you may inflict on the other person. The following is a list of items that are covered by Bodily Injury Liability Insurance:
If your negligent driving has caused injury to another human being, the first thing they would need is medical attention. Depending on the severity of the injuries, different levels of medical attention would be required. This would cover the expense of the care and the cost of follow-up appointments, drugs, and so on.
In case you are suing for damages, this type of policy will also help you pay your court expenses. Legal costs will quickly burn a hole in your wallet, particularly if the case drags on for months or years. Bodily injury liability insurance helps you cover such fees.
Loss of Income
For all the days the injured person is under treatment or is recovering from the injury, there will be some loss of income or wages for them. In such cases, you may be required to compensate for the said loss. Getting bodily injury liability Insurance helps you cover such expenses as well.
Cost of Funeral
As unfortunate as this sounds, such factors need to be factored in as well. You will be obliged to pay for the funeral of the other person involved in the accident if they die. Funerals can be an expensive affair and hence you should get bodily injury liability Insurance.
How Much Coverage Should You Get?
In many parts of Canada, bodily injury insurance is mandatory. The minimum and maximum limits of such coverage may differ from province to province.
But how do you know if the recommended minimum is sufficient? To determine if you need to expand your coverage to meet your needs, consider the following factors:
- Do you use your car a lot?
- Do you have a car that you use for work?
- Do you live in a heavily populated area with a higher risk of being involved in a car accident?
- Do you live in an area where frequent severe weather events raise the number of accidents?
- Do you make a living by commuting?
- Do you spend a lot of time driving on the highway or on dangerous roads?
- How much can you afford to pay out of your own pocket if the premiums were to surpass your insurance coverage?
How Does This Type of Insurance Work?
This form of policy functions quite similarly to any other type of general insurance. There are a few specifics, however, that you should be aware of.
This type of insurance comes with some coverage limits. This cap is set by you, just like every other auto insurance policy. You may set the cap in the form of a maximum amount of damage covered. Or it could simply cover the entire amount of actual damage. It all boils down to the amount of premium you’re willing to pay.
A simple example to describe the maximum amount of coverage would be that if you get into an accident and the coverage is $2,00,000/$4,00,000. This would mean that $2,00,000 worth of coverage is available for each person injured and the maximum amount of coverage is $4,00,000.
How Much Does Bodily Injury Liability Insurance Cost In Canada?
The cost of getting bodily injury liability insurance differs from province to province and also depends on your preferred insurance payment provider.
For most states, the minimum coverage is $2,00,000 but for Nova Scotia, you need a minimum coverage of $5,00,000. For Quebec, on the other hand, the minimum coverage is only $50,000.
The regular premium you will be paying for this insurance depends on your paying capacity as well as the type of plan you have chosen. The premium also varies depending on a variety of factors like your driving history, geographic location, add-ons of your choice, etc.
How is Bodily Injury Insurance Different from Property Damage Insurance?
Bodily Injury Insurance and Property Damage Insurance are very different from each other. There is a clear distinction between the two. Just the costs of the injuries and, in some cases, legal bills are covered by bodily injury insurance.
Contrary to this, damage to another person’s car or property is covered by property damage liability coverage. If you hit someone else’s vehicle, mailbox, or front porch with your car, property damage liability coverage can help pay for the repairs.
Now that you know how vital bodily injury liability insurance is for anyone who drives a car, you shouldn’t delay its purchase.