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What is Bodily Injury Coverage?

September 19th, 2025

5 min read

By Steven Ladd

Debra is on a busy stretch of I-81 near Syracuse during rush hour. The sun is low, casting its golden beams all across the highway. While Debra hugs a curve, the sunlight shifts, momentarily blinding her, and she suddenly loses control of her car. 

Debra crashes into another vehicle, causing serious injuries to the driver and passengers. She’s also hurt, but not as badly as them. She feels guilty and scared. 

What will happen next? Who will pay for the medical bills, the lost wages, the funeral expenses, and the emotional trauma of the victims? How will she afford to defend herself from a lawsuit? 

This is where bodily injury coverage comes in.

Understanding the Foundation of Your Auto Insurance Policy

 

Car accidents happen when you least expect them, and the aftermath can create overwhelming financial consequences. You need adequate protection that helps address the medical bills, lost wages, and legal costs that can arise when you're responsible for injuring others on Central New York roads.

At the Horan insurance agency, we work with several carriers to help you explore bodily injury coverage options that may fit your driving situation. We can assist you in understanding this important coverage component and finding suitable protection for your circumstances.

In this article, we'll explore what bodily injury coverage addresses, how coverage limits work, what amounts of coverage you might consider, and additional factors that could affect your decisions.

What Does Bodily Injury Insurance Cover?

Let me explain what your bodily injury limits cover you for. But first, think back to the last time you drove past a terrible accident. Like many, you turned your head a bit to see the aftermath.

Do you recall smashed-up cars, an ambulance, and the police? We’ve all seen our share of these. Some were worse than others. There is one thing all those accidents had in common. Somewhere in that chaos was the driver that caused the wreck.

Do you know who else was there? All the people hurt or even killed in that accident. Enter bodily injury coverage.

Bodily injury insurance coverage is used to compensate those affected in the accident. This does not cover the bodily injuries to the driver who caused the accident, only those injured because of it.

The coverage does live up to its name and pays for injuries—or the medical costs to treat the victim(s)—but it also pays for their loss of income if they cannot work after the accident. Since death is the ultimate injury, you can add funeral costs to the coverage.

Your bodily injury coverage also handles the pain and suffering of victims. Yet, that can be hard to figure out and usually involves a lawsuit. Fortunately, your legal expenses are also a part of bodily injury coverage.

What Do Bodily Injury Coverage Limits Mean?

Understanding bodily injury coverage limits.The state requires you to have at least $25,000 for any person injured and at least $50,000 available for the entire accident. This is called split limit coverage. If you’re like others, you might find this part confusing. Let’s bring it into focus.

The most one victim of an accident can collect is $25,000, and $50,000 is the total we have to work with. You’ll see this listed on your policy as $25,000/$50,000. Below are some real-world examples of this in action.

  • Example 1: Suppose Steve suffers $33,000 in injuries. Since $25,000 is the most one person can receive under this coverage limit, you don’t have enough to cover all of Steve’s expenses, and Steve could sue you for the difference.
  • Example 2: Steve and Sarah were each injured in an accident you caused. Steve’s injuries totaled $18,000, and Sarah’s were $21,000. Since each fell beneath $25,000 and their combined total was less than $50,000, adequate coverage was available.
  • Example 3: Steve, Sarah, and Kristy were all injured in an accident you caused. Steve's injuries totaled $15,000, Sarah's were $20,000, and Kristy's were $23,000. At first glance, it seems the coverage appears adequate here too, but sadly, it isn't. The combined losses of $58,000 are $8,000 above the $50,000 limit, and you are responsible for the difference.

The formula we just described remains the same regardless of how much coverage you have. So, it’s time to answer a critical question:

What Amount of Bodily Injury Coverage Might You Consider?

You might want to consider carrying as much coverage as you can reasonably afford while avoiding the lowest liability limits or state minimums. As the saying goes, “anything is possible,” and there is no way to know how bad a future accident could be. Any savings or assets (including retirement) will be at risk if you run out of liability coverage.

Even without assets, an injured person might still seek compensation through wage garnishment. Wage garnishment means your paycheck has money removed for another person's benefit. It may be wise to consider additional coverage to help address these concerns.

Many law practices focus on representing people injured in an auto accident. They leave no stone unturned when looking for ways to get compensation for their clients. The more coverage you carry—even if that means adding an umbrella policy—the more you can refer them to your insurance company.

What Will It Cost Me to Add More Coverage?

You have now arrived at the most positive part of the bodily injury coverage topic! Adding more coverage is not expensive and doubling it will not double your price. In fact, you can often go much higher without experiencing a tremendous increase in cost.

Should the cost of adding more go beyond your budget, there is one thing you can consider. If you have comprehensive and collision coverage on a vehicle, you could increase its deductible. Raising a deductible from $500 to $1,000 could free up enough money to buy more liability insurance. It will likely be easier to find $500 to fix your car than to find $100,000 to settle an injury lawsuit!

Ask your agent for the cost differences on all available liability options. Doing so will allow you to make an informed decision.

Auto Insurance Quote Sheet Graphic

Are There Any Other Details I Should Know?

Yes, there are a few points worth making to wrap things up. Below is a brief list of those final pieces.

  • Bodily injury coverage is policy-wide. This means that it is the same amount of coverage for all the vehicles. One car does not have a separate amount compared to another on the same policy.

  • We mentioned split limit coverage earlier. That is the most common way to get bodily injury coverage. But you can also choose combined single limit coverage. Single limit coverage removes the individual limits and acts as one total amount. Not all insurance companies offer single limit coverage, and those who do usually charge more for it.
  • The insurance company chooses your lawyer. It is the carrier’s decision since they’re paying to defend you. So, even if you want them to call Saul, they’ll call Doug.
  • The carrier can settle at any time and doesn’t need approval. As much as you believe the other person was barely hurt, the carrier might cut their losses and settle. That is especially true if they see costly litigation in the future. If it’s cheaper to settle, they will.

You now have information that can help you understand how bodily injury coverage works. By understanding this coverage and its importance, you are better positioned to make informed decisions. Want more car insurance liability information? Check out our articles “What Does Property Damage Liability Cover?” and our Guide to Auto Insurance.

Making Informed Decisions About Your Bodily Injury Coverage

Understanding how bodily injury coverage works can give you confidence when making insurance decisions. When you know what this coverage addresses and how limits function, you can better evaluate what amount might suit your situation and budget.

Consider the potential financial consequences of causing an accident in Central New York. Medical bills, lost wages, and legal costs can quickly exceed state minimum coverage amounts. Higher coverage limits may provide additional financial cushion, while lower limits could leave you responsible for amounts that exceed your policy.

The Horan insurance agency can help you explore bodily injury coverage options from different carriers. We can discuss various limit amounts, explain how they work with your budget, and help you find suitable coverage for your driving situation.

Click the Get a Quote button below to learn more about bodily injury coverage options that might fit your requirements.

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