Bodily Injury Liability is a type of insurance coverage that pays for injuries you cause to other people when you're at fault in an accident, such as their medical bills, lost wages, pain and suffering, and other damages resulting from their physical harm. This coverage is mandatory in most states for drivers and is typically expressed as two numbers, like "25/50," meaning the insurance will pay up to $25,000 per person injured and up to $50,000 total for all injuries in a single accident. The insurance company will defend you in court if you're sued and will pay settlements or judgments up to your policy limits, but you could be personally responsible for any amount above those limits.
When you're injured by someone else's negligence, their Bodily Injury Liability coverage is what pays for your medical expenses, rehabilitation costs, lost income, and compensation for your pain and suffering. However, if the at-fault person has low insurance limits and your injuries are severe, you might not receive full compensation for your damages, which is why some people carry Underinsured Motorist coverage on their own policies as backup protection. The amount of Bodily Injury Liability coverage someone carries can significantly impact your personal injury case, as insurance companies will only pay up to the policy limits regardless of how much your injuries are actually worth, potentially leaving you to pursue the at-fault person's personal assets if your damages exceed their coverage.
