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Bodily Injury Car Insurance Coverage: How Does It Work?

Bodily Injury Liability (BI or BIL) insurance is one of the two forms of liability car insurance coverage that pay for any damages you caused other drivers. Most states require minimum limits of this coverage to demonstrate your financial responsibility on the road, but consumers can pay more and opt for greater coverage. 

Table of Contents 

How Does Bodily Injury Liability Coverage Work?

Bodily Injury Liability insurance pays for injuries you cause to another driver if you are at-fault in the accident. Bodily injury does not cover the medical costs of injuries you may get in the accident. It is considered a "third-party" insurance, since it only covers other drivers and passengers (you're the "first-party").

What Can A Third Party Claim As Bodily Injury?

The types of expenses a third-party can file against your bodily injury liability policy include:
  • Bills for the other party's hospitalization, follow-up care, and related medical or health care
  • Lost Wages: If the harmed party was seriously injured and unable to work, your bodily injury liability coverage makes up for their lost income. This amount will be based upon the amount of time they are unable to work as a result of the injury, and subject to various limits based on where you live
  • Legal Fees: This is the one item where bodily injury pays for your expenses instead of the third party. Your insurer will usually provide legal defense for you if you are sued by the other party, and that's paid for under your own bodily injury coverage

How to Understand Bodily Injury Liability Limits

Your bodily injury coverage is stated in a three number format like so "25/50/25". In the three number format, the first two numbers are the bodily injury coverage limits and the third is for property damage, a separate type of coverage. The first number is the amount covered for one person in the accident, while the second number represents the amount covered in the entire accident.  So for example, if you are quoted a 25/50 limit for bodily injury, it means that the insurance policy will cover up to a maximum of $25,000 per person injured in an accident and a total of $50,000 in claims for a single accident. We'll look at two examples to explain how bodily injury liability would work.
  1. You were deemed at fault for an accident in which two people in the other vehicle were injured. Person A had medical expenses of $30,000 while Person B had medical expenses of $10,000. While the combined medical bills are within the $50,000 limit per accident, your auto insurance policy will only pay Person A $25,000, and Person B $10,000. That's because Person A's expenses exceeded the per person limit, leaving you on the hook for the $5,000 of the unpaid claim.
  2. You were at fault for an accident in which two people were injured. Both made medical expense claims of $25,000 each. Because both the individual claims were within the $25,000 and the combined claim was less than or equal to $50,000 the insurance policy would cover these expenses.
Combined Single Limit (CSL) is another – and less common – type of limit consumers may purchase. Compared to the split limit, CSL has one limit that applies to the whole accident, and can pay out to the total coverage amount and is not constrained the number of injured people. The flexibility of CSL limits make this type of limit more costly to insure for, and not every car insurance company provides this option. 

Minimum Bodily Injury Liability Requirements by State

Each state has a minimum amount of coverage you are required to have as part of your auto insurance. The most common BIL limit is $25,000, but it changes. Florida doesn't even require this coverage. State minimums for bodily injury liability are displayed in the following table:

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