ISU - Armac Blog

Bodily Injury is a coverage available on your auto insurance policy. This is what is generally referred to as Liability. As a California driver of a vehicle you are required to carry Bodily Injury with limits of $15,000 per person and $30,000 per occurrence and $5000.00 for Property Damage. This means that if you crash into me and the accident is all your fault, I will have up to $15,000 to cover my physical injury and any medical bills pertaining to the accident. If I have passengers in my vehicle who are also injured they would also have a $15,000 limit for Bodily Injury, but the maximum amount that your policy would pay for injury in any one accident is $30,000. You would have $5000 to cover the Property Damage that you caused to my vehicle.    With the increasing cost of auto repairs and medical care these limits are inadequate for most people. Medical costs are the number one cause of bankruptcy in this country. Can you imagine having these limits and causing an accident where there were serious injuries… or the medical bills that you might be responsible for if you caused a multiple car accident and several people were injured. Two cars could easily hold ten people. If every person were injured, the max your policy would pay would be $3000 each. The injured parties would then sue you for any bills they have over $3000. This could cause judgments, wage garnishments, you might even lose your home. Although the limits above meet the  state minimum requirement it is a good idea to talk to your agent about higher limits to make sure your assets are covered properly.