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How Does Bodily Injury & Property Damage Liability Insurance Work?

December 14th, 2022 by

When it comes to hitting the road, car insurance is there to protect you (and others on the road) just in case the road isn’t all you “hit.” But, there are so many variations available to you. What’s the difference between basic, legally required car insurance and policies such as bodily injury or property damage liability coverages?

What Is Bodily Injury Insurance?

Most states require some form of Bodily Injury Insurance. In its simplest form, it is a policy that covers others you may injure in a car accident. Any injuries, treatments, doctors’ visits, or medications may be covered under your bodily injury policy. Additionally, things like missed work due to injury can be included on this type of insurance.

This policy would cover other drivers and passengers in the event of injury. Some examples of covered expenses, in the event of an accident, include:

  • Medical Expenses
  • Lost Wages
  • Legal Fees
  • Pain and Suffering
  • Funeral Costs

To better understand what coverage you have, what you need, and what you may want, feel free to schedule a visit with me. I can review how each portion works, and what you may need for your individual situation.

What Is Property Damage Liability Insurance?

The “yin” to Bodily Injury Insurance’s “yang” is Property Damage Liability Insurance. Property damage liability coverage helps you as a driver pay for damage you cause to another person’s vehicle or property. 

For example, if you hit someone else’s car, this type of policy would be responsible for its damages. In addition, should you hit, say, a mailbox or a front porch with your car, property damage liability coverage may also help pay to repair the damaged property. 

Like bodily injury liability, most states require you to carry a minimum limit of property damage liability coverage. To understand what Minnesota requires, keep reading!

What Insurance Is Required in Minnesota?

According to our state government, Minnesota has set requirements as to what a driver must cover in order to be legal on the roads.

For example, each driver must have a minimum no-fault coverage of $40,000. That amount is available to each person injured in an accident; $20,000 is allowed for medical expenses and $20,000 may be used for non-medical expenses. 

This does not mean you can’t add to it, but these types of coverage are required. Any coverage beyond these minimum amounts may be purchased as an addition.

Seek the Help of a Professional Insurance Agent

At the end of the day, these two types of policies, often bundled together and legally required, cover others. If you hurt a person, it typically is a bodily injury claim. If you hurt a person’s property, it is typically a property damage claim.

The best way to keep the different types of car insurance straight is to leave it to the pros. There are so many different types of policies. There are also so many variables that make your needs unique to you. 

Chatting with a professional, such as myself, gives you access not only to all of the different types of policies, but also, as an independent insurance agent, I am able to search products from different organizations. I am not tied or obligated to any single company, allowing me to find not only the best “fit,” but also the best price.Reach out to my office today to schedule an appointment and better understand what policies you need, which you may not, and how to get the best price on it all!

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