Bodily injury coverage sometimes has two limits. One is per person and the other is if multiple people are injured. For example, a policy may include a $15,000 bodily injury limit per person and a $25,000 total bodily injury limit (for everyone hurt). There’s a separate limit on property damage. However, it is also possible to have a single liability limit that covers everything. One important thing to keep in mind when looking at limits is that the minimum set by most states sometimes isn’t enough to cover the actual damage. If that happens, you’ll be required to pay the difference out of pocket. This is why I strongly urge my clients to get more than minimum coverage. The general recommendation is $100,000 for bodily injury and $300,000 per accident.
Pro Tip: Cover Your Butt
I’m repeating this here because it’s absolutely crucial: Ensure your policy covers more than the minimum liability requirement so you can avoid having to pay damages out-of-pocket. Medical payments coverage covers you and your family if you’re in a car, on a bike, or are a pedestrian hit by a car. This helps you and your passengers with medical payments, dental care, and funeral costs. This coverage is required in some states but not others. One thing to think about when weighing the option is if you have health insurance and long-term disability insurance. If you do, you’ll already be covered in an accident, so I recommend only buying the minimum medical payments coverage required by your state. The other kind of medical insurance is personal injury protection (PIP). It’s also called no-fault insurance. PIP is required in no- fault states; in fact, these are the only states where PIP is offered. Like medical payments coverage, PIP helps with your medical
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