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Whatever reason you are shopping for auto insurance, rather it includes the purchase of a vehicle or it is time to renew your existing policy, the decision is not one to be taken lightly.
With questions as what coverage to add, what it all means, what are you agreeing to, etc. can often appear as if it was developed by some alien planet, there are reasons for each specific coverage offered.
Two very important factors to be considered when deciding on bodily injury automobile insurance coverage are, it may be required by law and it protects you financially.
In simple terms, bodily injury coverage provides expenses associated with injury or death to other people due to an accident in which you are involved.
In addition, it offers legal defense in the case of a law suit being filed. It also covers passengers in your vehicle; however, what it does not cover, is your vehicle or anyone named in your policy as a driver.
Not just covering the expense of the injury itself, bodily injury coverage contains provisions for loss of income and pain and suffering as well.
Mandatory in most states, the amount required is also state mandated. While some states do not require the coverage, they do require the ability to provide financial responsibility.
Should you be involved in an at fault accident where death or injury is a result, the inability to provide financial aid can result in a state imposed SR 22. If placed on your report, you would be required to maintain this coverage for three years, and the cost far outweighs any amount having the protection in the first place would have cost you.
Your insurance agent, who is well trained in the otherwise alien language, is your best option for determining the amount of coverage you will need. Important factors to consider are the financial results if you are under insured and the ability to tap into your personal finances in the case of a judgement.
While the coverage is provided in increments of $100,000’s, there are two portions to the actual provision. While the first portion covers the amount per person, the second portion covers the maximum paid per accident.
Taking into account all personal assets, including real estate, your coverage should be equal to your net worth. Again, your insurance agent has guides and formulas to assist in determining the amount that best protects you.
The cost associated with adding bodily injury to your policy takes into account many factors when assessing the amount you will pay annually. With the location of your residence being a primary factor, age, marital status and driving record are also used in the calculation. One thing to consider in having a bodily injury endorsement is to consider full coverage insurance.
While the state board of insurance can provide information on the requirements of the coverage required for your state, it is not a sound financial decision to go without this protection.
As lawsuits continue to increase where auto accidents are concerned, having bodily injury coverage on your automobile insurance policy just makes sense.