Understanding Bodily Injury Liability Coverage

What Is Bodily Injury Liability Coverage?

Bodily injury liability (BI) coverage is the component of an auto insurance policy that pays for injuries you cause to other people in an accident. If you are found at fault for a crash, your BI coverage pays the medical bills, lost wages, pain and suffering, and other damages of the people you injured — up to your policy limits.

From an accident victim's perspective, the at-fault driver's BI coverage is the primary source of compensation for your injuries. Understanding how it works helps you understand what to expect when making a claim against someone who hit you.

How BI Coverage Is Expressed

Bodily injury liability limits are typically expressed as two numbers separated by a slash, such as 25/50 or 100/300. These numbers represent:

First number (per person limit): The maximum the insurer will pay for injuries to any one person in an accident
Second number (per accident limit): The maximum the insurer will pay for injuries to all people combined in a single accident

For example, a 25/50 policy pays no more than $25,000 for any one victim and no more than $50,000 total for all injured parties. If there are three seriously injured victims in a single accident with a 25/50 policy, the $50,000 is divided among all three claims.

State Minimum BI Requirements

Every state that requires auto insurance sets minimum BI liability limits. Common minimums include:

Georgia: 25/50
Florida: No BI requirement for most drivers (PIP state)
Texas: 30/60
California: 15/30 (increasing to 30/60 in 2025)
New York: 25/50

State minimums are generally considered inadequate for serious injury cases. A victim with $150,000 in medical bills cannot recover more than the at-fault driver's per-person limit, regardless of the actual damages.

What BI Coverage Pays For

A valid BI claim against an at-fault driver's policy can cover:

Emergency medical treatment
Hospitalization and surgery
Ongoing medical care and rehabilitation
Lost wages and loss of earning capacity
Pain and suffering
Emotional distress
Wrongful death benefits (for fatal accidents)

Policy Limits and What Happens When They're Not Enough

When your damages exceed the at-fault driver's BI limits, you have limited options for the excess:

Sue the at-fault driver personally for the difference (often impractical if they have limited assets)
Make a claim under your own underinsured motorist (UIM) coverage for the difference, up to your UIM limits

This is why having adequate UIM coverage on your own policy is so important. Learn more about UM/UIM coverage here.

The BI Claims Process

You file a claim with the at-fault driver's insurance company
The insurer assigns an adjuster to investigate the accident
You provide documentation of your injuries and damages
The insurer either accepts the claim and makes an offer, or disputes liability
Negotiation occurs — most claims settle without litigation
If agreement cannot be reached, you may file a lawsuit

Frequently Asked Questions

What if the at-fault driver's insurer denies my claim?

You can dispute the denial, file a complaint with your state insurance commissioner, or pursue the matter through litigation. An attorney can help you understand your options and fight an improper denial.

Can the insurer offer less than my actual damages?

Yes. Insurers regularly offer less than the full value of a claim. This is where negotiation — often with an attorney — becomes essential. Check your eligibility for assistance here.